Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:13_15:p3
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 13 cl 15 (pt 3/11)
Character Range: 114374–117126

interests in the entity held by the holder of the membership interest; or
 (iii) membership interests in the entity held by persons other than the holder of the membership interest; or
 (iv) interests in any of the above;
  including rights that are conferred or exercisable only if the holder of the membership interest or interests concerned is, or is not, a prescribed person; and
 (c) the extent to which any such special or limited rights are similar to or differ from the rights that are normally attached to the ownership of *ordinary membership interests in *corporate tax entities; and
 (d) the relationship between the value of the membership interest and the value of the entity; and
 (e) any relationship or connection (whether of a personal or business nature) between holders of membership interests in the entity of which the entity is aware; and
 (f) any *arrangement in respect of membership interests (including unissued membership interests) in the entity, or interests in membership interests in the entity, of which the entity is aware;
it would be reasonable to conclude that the membership interest is not relevant in determining whether the entity is effectively owned by prescribed persons because holding the membership interest 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 *membership interest in an entity held by a person who is not a prescribed person is an excluded membership interest if:
 (a) it is a finance membership interest; or
 (b) it is a distribution access membership interest; or
 (c) it does not carry the right to receive distributions; or
 (d) it was issued, transferred or acquired for a purpose (other than an incidental purpose) of ensuring that the entity is not effectively owned by prescribed persons.
 (6) A *membership interest is a finance membership interest if:
 (a) the membership interest is a *non‑equity share in the entity; or
 (b) having regard to the rights attached to the membership interest and to any *arrangement with respect to the membership interest of which the entity is aware, the membership interest is equivalent to a debt owed by the entity to the holder of the membership interest.
 (7) A *membership interest to which subsection (6) does not apply is a finance membership interest if:
 (a) the manner in which the *distributions payable in respect of the membership interest are calculated, and the conditions applying to the payment