Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 6/20)
Character Range: 6805833–6808547

some future time consideration of a particular kind or kinds to someone; and
 (b) that future time is not less than the number of days, prescribed by regulations made for the purposes of paragraph 761D(1)(b) of the Corporations Act 2001, after the day on which the arrangement is entered into; and
 (c) the amount of the consideration, or the value of the arrangement, is ultimately determined, *derived from or varies by reference to (wholly or in part) the value or amount of something else (of any nature whatsoever and whether or not deliverable), including, for example, one or more of the following:
 (i) an asset;
 (ii) a rate (including an interest rate or exchange rate);
 (iii) an index;
 (iv) a commodity; and
 (d) subsection (4) does not apply in relation to the arrangement.
 (4) An *arrangement under which one person has an obligation to buy, and another person has an obligation to sell, property is not an arrangement covered by subsection (3) merely because the arrangement provides for the consideration to be varied by reference to a general inflation index such as the Consumer Price Index.

Voting percentages in a company

768‑550  Direct voting percentage in a company
 (1) An entity's direct voting percentage at a particular time in a company is:
 (a) if the entity has a voting interest (within the meaning of section 334A of the Income Tax Assessment Act 1936) in the foreign company at that time amounting to a percentage of the voting power of the company—that percentage; or
 (b) otherwise—zero.
 (2) In applying section 334A of the Income Tax Assessment Act 1936 for the purposes of subsection (1) of this section, assume that:
 (a) the entity is a company; and
 (b) the entity is not the beneficial owner of a *share in the company if a trust or partnership is interposed between the entity and the company.

768‑555  Indirect voting percentage in a company
 (1) An entity's indirect voting percentage at a particular time in a company (the subsidiary company) is worked out by multiplying:
 (a) the entity's *direct voting percentage (if any) in another company (the intermediate company) at that time;
by:
 (b) the sum of:
 (i) the intermediate company's direct voting percentage (if any) in the subsidiary company at that time; and
 (ii) the intermediate company's indirect voting percentage (if any) in the subsidiary company at that time (as worked out under one or more other applications of this section).
 (2) If there is more than one intermediate company to which subsection (1) applies at that time, the entity's indirect voting percentage is the sum of the percentages worked out under subsection (1) in relation to each of those intermediate companies.

768‑560  Total