Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_3:p21
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 21/26)
Character Range: 155354–158007

whether or not any associate entity is a foreign entity).

Note: A corporate limited partnership that is an Australian entity may be a foreign controlled Australian partnership, see section 820‑795.

Exception

 (2) Despite subsection (1), a company is not an FCAC at a particular time if, at that time:
 (a) the company would, apart from this subsection, be an FCAC only because of paragraph (1)(a) or (b); but
 (b) the total of the following interests would be less than 20% if paragraphs 820‑875(2)(a) and (b) were disregarded:
 (i) the *TC direct control interest in the company held by the *foreign entity or entities mentioned in paragraph (1)(a) or (b);
 (ii) the *TC indirect control interest in the company held by the foreign entity or entities;
 (iii) the TC direct control interests in the company held by any *associate entities of the foreign entity or entities (other than any TC direct control interests that have been taken into account in calculating the interest mentioned in subparagraph (ii));
 (iv) the TC indirect control interests in the company held by the entity's associate entities (other than any TC indirect control interests that have been taken into account in calculating the interest mentioned in subparagraph (ii)).

Note: Paragraphs 820‑875(2)(a) and (b) set out special rules under which an entity is taken to hold a TC control tracing interest in another entity that is equal to 100%, which could then be taken into account in calculating a TC indirect control interest.

820‑790  What is a foreign controlled Australian trust?

 (1) A trust is a foreign controlled Australian trust (or an FCAT) at a particular time if, and only if, at that time, it is an *Australian trust to which at least one of the following paragraphs applies:
 (a) not more than 5 *foreign entities (each of which holds a *TC control interest in the trust that is at least 1%) hold a total of TC control interests in the trust that is 50% or more;
 (b) a foreign entity holds a TC control interest in the trust that is 40% or more, and no other entity or entities (except an *associate entity of the foreign entity or entities including the foreign entity or its associate entities) control the trust;
 (c) all of the following subparagraphs apply to the trust:
 (i) at least one of the objects or beneficiaries of the trust is a foreign entity;
 (ii) there has been at least one distribution of income or capital of the trust made to such an object or beneficiary (whether directly or indirectly) during the income year in which that particular time occurs, or during the preceding 2 income years;
 (iii) the total TC control interests in