Document ID: chunk:federal_register_of_legislation:F2025L00245:reg:2:p3
Version: federal_register_of_legislation:F2025L00245
Segment Type: reg
Provision Reference: reg 2 (pt 3/5)
Character Range: 6019–8914

principles with which the Commission must comply in making a determination under the Act, subsection 52ZZZH(2) that the value of a specified asset owned by a company or a trust is to be reduced by the whole or a specified part of a specified liability.

          9  Liability arising from genuine arms-length transaction

        (1) The Commission must consider whether the specified liability arose from a genuine arm's length transaction between the company or trust that owns the specified asset and another entity.

        (2) A transaction is taken to be a genuine arm's length transaction for the purposes of subsection (1) if the transaction:
           (a) relates to an arrangement that relates to the specific business activities of the company or trust; and
           (b) is not with, or does not relate to an arrangement with, a person who is a minor; and
           (c) is made under a written agreement that is signed by each party to the agreement and witnessed by an independent person.
        (3) Provided the requirements in subsection (2) are met in relation to a transaction, the transaction may be a transaction between the company or trust that owns the specified asset and an individual who is the sole attributable stakeholder of the company or trust.

        (4) In this subsection:
       minor:
       (a) means a person who has not turned 18; and
       (b) includes a student; but
       (c) does not include a person who:
        (i) has turned 16; and
              (ii) is engaged on a full-time basis in an occupation, including an office, employment, trade, business, profession, vocation or calling.
       student means a person who has turned 16, but has not turned 18, who is enrolled in a full-time course of study at a school, college, university or similar educational institution.

Part 4 Determining certain asset is not controlled by individual—Act, subsection 52ZZZJ(2)

       10  Purpose—pt 4

         This Part sets out decision-making principles with which the Commission must comply in making a determination under the Act, subsection 52ZZZJ(2) that, for the purposes of the Act, part IIIB, division 11A, subdivision K (Concessional primary production trusts), an asset is taken not to be controlled by an individual if the asset is owned by:

           (a) a company that is a controlled private company in relation to the individual; or

           (b) a trust that is a controlled private trust in relation to the individual.

       11  Is the individual attributable stakeholder?

        (1) The Commission must consider whether it is likely that the individual would be considered to be an attributable stakeholder of the company or trust that owns the asset.

        (2) If the asset is owned by a trust that is a concessional primary production trust in relation to the individual, the Commission must consider whether it is