Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p34
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 34/46)
Character Range: 3136974–3139647

is a *dividend stake—the widely held company had the right to receive (whether directly or *indirectly), for its own benefit, any *dividends the tested company may pay in respect of that stake at that time; and
 (c) if the stake is a *capital stake—the widely held company had the right to receive (whether directly or indirectly), for its own benefit, any distributions of capital of the tested company in respect of that stake at that time; and
 (d) in any case—the widely held company were a person (other than a company).
Note: The persons who actually control the voting power and have rights to dividends and capital are taken not to control that power or have those rights: see section 166‑265.

Exception
 (3) This section does not apply in respect of a *widely held company if the company is not a widely held company for the whole income year in which the *ownership test time occurs.
Note: See section 165‑255 for the rule about incomplete periods.

Acquisition of widely held company by another entity
 (4) If:
 (a) a new company acquires all the *shares in the *widely held company; and
 (b) immediately before the acquisition, the shares in the widely held company were listed for quotation in the official list of an *approved stock exchange; and
 (c) immediately after the acquisition, the shares in the new company are listed for quotation in the official list of an approved stock exchange; and
 (d) the new company has the same classes of shares (not being *redeemable shares) as the widely held company; and
 (e) each entity that held stakes in the widely held company immediately before the acquisition holds the same proportion of the total *voting stakes, *dividend stakes or *capital stakes in the new company immediately after the acquisition as the entity held in the widely held company immediately before the acquisition;
then, at all times that the widely held company held or is taken to have held a stake in the tested company, the new company is taken to have held that stake.
 (5) Except for the purposes of determining whether a time is an alteration time (within the meaning of section 165‑115L), section 166‑272 (which is about same shares or interests) is to be disregarded when applying subsection (4).

166‑245  Stakes held by other entities
 (1) This section modifies how the ownership tests in section 166‑145 are applied to the tested company if:
 (a) an entity mentioned in subsection (2) directly or indirectly (through one or more interposed entities) holds a *voting stake, a *dividend stake or a *capital stake in the company; and
 (b) neither the entity nor another entity has, under section 166‑225, 166‑230 or 166‑240, been