Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 2/29)
Character Range: 2848992–2851825

(b) the sum of:
 (i) the intermediate entity's direct small business participation percentage (if any) in the test entity at that time; and
 (ii) the intermediate entity's indirect small business participation percentage (if any) in the test entity at that time (as worked out under one or more other applications of this section).
Note: When testing an intermediate entity's indirect small business participation percentage in another entity, the intermediate entity becomes the holding entity.
 (2) If there is more than one intermediate entity to which paragraph (1)(a) applies at that time, the holding entity's indirect small business participation percentage is the sum of the percentages worked out under subsection (1) in relation to each of those intermediate entities.
Example: The individual mentioned in the diagram has an indirect small business participation percentage in the unit trust.

 Multiplying the percentages as mentioned in subsection (1) produces small business participation percentage of 43.2%.
 If the individual had a direct small business participation percentage of 10% in the unit trust, that would be added to the individual's indirect small business participation percentage to produce a small business participation percentage in the trust of 53.2%.

Nomination of controllers of discretionary trust

152‑78  Trustee of discretionary trust may nominate beneficiaries to be controllers of trust
 (1) This section applies for the purposes of determining whether an entity is *connected with you, for the purposes of:
 (a) this Subdivision; and
 (b) sections 328‑110, 328‑115 and 328‑125 so far as they relate to this Subdivision.
 (2) The trustee of a discretionary trust may nominate not more than 4 beneficiaries as being controllers of the trust for an income year (the relevant income year) for which the trustee did not make a distribution of income or capital if the trust had a *tax loss, or no *net income, for that year.
 (3) A nomination under subsection (2) has effect as if each nominated beneficiary controlled the trust for the relevant income year in a way described in section 328‑125.
Note: This means each nominated beneficiary is connected with the trust.
 (4) A nomination under subsection (2) must:
 (a) be in writing; and
 (b) be signed by the trustee and by each nominated beneficiary.

CGT event happens to asset or interest within 2 years of an individual's death

152‑80  CGT event happens to an asset or interest within 2 years of individual's death
 (1) This section applies if:
 (a) a *CGT asset:
 (i) forms part of the estate of a deceased individual; or
 (ii) was owned by joint tenants and one of them dies; and
 (b) any of the following applies:
 (i) the asset devolves to the individual's *legal personal representative;
 (ii) the asset *passes to a beneficiary of