Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 14/34)
Character Range: 3559344–3561946

imputation purposes) of a company if the entity is a *controller of the company (for CGT purposes).

Controller of an entity other than a company—basic meaning
 (6) Subject to subsections (7) and (8), an entity is a controller (for imputation purposes) of an entity other than a company (the controlled entity) if:
 (a) a group in relation to the entity has the power, by means of the exercise of a power of appointment or revocation or otherwise, to obtain beneficial enjoyment (directly or indirectly) of the capital or income of the controlled entity; or
 (b) a group in relation to the entity is able (directly or indirectly) to control the application of the capital or income of the controlled entity; or
 (c) a group in relation to the entity is capable, under a *scheme, of gaining the beneficial enjoyment mentioned in paragraph (a) or the control mentioned in paragraph (b); or
 (d) the controlled entity or, if the controlled entity is a trust, the trustee of the trust:
 (i) is accustomed; or
 (ii) is under an obligation; or
 (iii) might reasonably be expected;
  to act in accordance with the directions, instructions or wishes of a group in relation to the entity; or
 (e) if the controlled entity is a trust—a group in relation to the entity is able (directly or indirectly) to remove or appoint the trustee of the trust; or
 (f) a group in relation to the entity has *more than a 50% stake in the income or capital of the controlled entity; or
 (g) entities in a group in relation to the entity are the only entities that, under the terms of:
 (i) the constitution of the controlled entity or the terms on which the controlled entity is established; or
 (ii) if the controlled entity is a trust—the terms of the trust;
  can obtain the beneficial enjoyment of the income or capital of the controlled entity.

Group in relation to an entity
 (7) For the purposes of subsection (6), each of the following constitutes a group in relation to an entity:
 (a) the entity acting alone;
 (b) an *associate of the entity acting alone;
 (c) the entity and one or more associates of the entity acting together;
 (d) 2 or more associates of the entity acting together.

Commissioner's power to take an entity not to be a controller (for imputation purposes)
 (8) If:
 (a) at a particular time, an entity (the first entity) would, but for this subsection, be a *controller (for imputation purposes) of an entity other than a company (the second entity); and
 (b) the Commissioner, having regard to all relevant circumstances, considers that it is reasonable that the first entity be taken not to be