Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p29
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 29/34)
Character Range: 3596917–3599714

nature) between holders of partial interests in the entity, and the holders of membership interests in the entity, of which the entity is aware; and
 (g) any *arrangement in respect of membership interests (including unissued membership interests) in the entity, or partial interests in the entity, of which the entity is aware;
it would be reasonable to conclude that the partial interest is not relevant in determining whether the entity is effectively owned by prescribed persons because holding the membership interest to which the partial interest relates does not involve the holder bearing the risks, or result in the accrual to the holder of the opportunities, of ownership of the entity that ordinarily arise from, or are ordinarily attached to, the holding of *ordinary membership interests in an entity.
 (4) In applying subsection (3), the fact that a person is a trustee is to be disregarded.
 (5) Without limiting subsection (3), a *partial interest in an entity is also an excluded partial interest if it was granted or otherwise created, or was transferred or acquired, for a purpose (other than an incidental purpose) of ensuring that the entity is not effectively owned by prescribed persons.

208‑40  Prescribed persons
 (1) A company is a prescribed person in relation to another *corporate tax entity if:
 (a) the company is a foreign resident; or
 (b) were the company to receive a *distribution made by the other corporate tax entity, the distribution would be *exempt income or *non‑assessable non‑exempt income of the company.
 (2) A trustee is a prescribed person in relation to a *corporate tax entity if:
 (a) all the beneficiaries in the trust are prescribed persons under other provisions of this section; or
 (b) were the trustee to receive a *distribution made by the corporate tax entity, the distribution would be *exempt income or *non‑assessable non‑exempt income of the trust estate.
 (3) A partnership is a prescribed person in relation to a *corporate tax entity if:
 (a) all the partners are prescribed persons under other provisions of this section; or
 (b) were the partnership to receive a *distribution made by the corporate tax entity, the distribution would be *exempt income or *non‑assessable non‑exempt income of the partnership.
 (4) An individual (other than a trustee) is a prescribed person in relation to a *corporate tax entity if:
 (a) he or she is a foreign resident; or
 (b) were he or she to receive a *distribution made by the corporate tax entity, the distribution would be *exempt income or *non‑assessable non‑exempt income of the individual.
 (5) The Commonwealth, each of the States, the Australian Capital Territory, the Northern Territory and Norfolk Island are prescribed persons in relation to any *corporate tax entity.
 (6) An