Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_2:p3
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 3/6)
Character Range: 177214–179961

is the result of applying the following method statement if there are 2 interposed entities between the top entity and the company, trust or partnership at that time.

      Method statement
           Step 1. Calculate the *TC control tracing interest that the top entity holds in the first of those interposed entities at that time.
           Step 2. Multiply the result of step 1 by the *TC control tracing interest that the first interposed entity holds in the next interposed entity (the second interposed entity) at that time.
           Step 3. Multiply the result of step 2 by the *TC control tracing interest that the second interposed entity holds in the company, trust or partnership at that time.

More than 2 interposed entities

 (6) The *TC indirect control interest is the result of applying the following method statement if there are more than 2 interposed entities between the top entity and the company, trust or partnership at that time.

      Method statement
           Step 1. Calculate the *TC control tracing interest that the top entity holds in the first of those interposed entities at that time.
           Step 2. Multiply the result of step 1 by the *TC control tracing interest that the first interposed entity holds in the next interposed entity (the second interposed entity) at that time.
           Step 3. Multiply the result of step 2 by the *TC control tracing interest that the second interposed entity holds in the next interposed entity at that time.
           Step 4. Continue this pattern of multiplying the result of the last multiplication by the *TC control tracing interest in the next interposed entity held by the preceding entity, ending with a multiplication by the TC control tracing interest held by the last interposed entity in the company, trust or partnership.

820‑875  TC control tracing interest in a company, trust or partnership

 (1) A thin capitalisation control tracing interest (or a TC control tracing interest) that an entity holds in a company, trust or a partnership at a particular time is equal to the *TC direct control interest in the company, trust or partnership that the entity holds at that time.

 (2) Despite subsection (1), an entity is taken to hold a *TC control tracing interest in a company, trust or partnership that is equal to 100% at a particular time if, at that time:
 (a) the entity and its *associate entities hold a total of *TC direct control interests in the company, trust or partnership that is 50% or more; or
 (b) the following subparagraphs apply:
 (i) the entity (the controlling entity) and its associate entities hold a total of TC direct control interests that is 40% or more in the company, trust or partnership;
 (ii) no other entity