Document ID: chunk:federal_register_of_legislation:C2025C00014:section:78a:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 78A (pt 1/17)
Character Range: 416735–419303

78A  Certain gifts not to be allowable deductions
 (1) In this section:
agreement includes any agreement, arrangement or understanding, whether formal or informal or express or implied, and whether or not enforceable by legal proceedings (whether or not the agreement, arrangement or understanding was intended to be so enforceable).
associate, in relation to the donor of a gift, means:
 (a) in the case of a donor being a natural person:
 (i) a relative of the donor;
 (ii) a partner of the donor;
 (iii) if a partner of the donor is a natural person—the spouse of that partner;
 (iv) a trustee of a trust estate where the donor or a person who is an associate of the donor by virtue of subparagraph (i), (ii), (iii) or (v) benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, partnerships or trusts; or
 (v) a company where:
 (A) the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the donor, of a person who is an associate of the donor by virtue of subparagraph (i), (ii), (iii) or (iv) or of a company that is an associate of the donor by virtue of another application of this subparagraph; or
 (B) the donor is, the persons who are associates of the donor by virtue of subparagraphs (i), (ii), (iii) and (iv) are, or the donor and the persons who are associates of the donor by virtue of those paragraphs are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the company; or
 (b) in the case of a donor being a company:
 (i) a partner of the donor company;
 (ii) if a partner of the donor company is a natural person—the spouse of that partner;
 (iii) another person where:
 (A) the donor company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of that person, whether those directions, instructions or wishes are communicated directly to the donor company or its directors, or through any interposed companies; or
 (B) that person is, or that person and the persons who, if that person were the donor, would be associates of that person by virtue of paragraph (a) or by virtue of another subparagraph of this paragraph are, in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might