Document ID: chunk:federal_register_of_legislation:C2007A00056:clause:3_26
Version: federal_register_of_legislation:C2007A00056
Segment Type: clause
Provision Reference: sch 3 cl 26
Character Range: 33727–34414

26  At the end of section 703‑35
Add:

 (7) A *membership interest of a particular kind in an entity that is beneficially owned by another entity may be disregarded under subsection (4) if:
 (a) the membership interest forms part of a stapled security (within the meaning of Division 13A of Part III of the Income Tax Assessment Act 1936); and
 (b) the stapled security is treated as a *qualifying share because of Subdivision DB of that Division.

Note: The kinds of membership interest that form part of a stapled security are an ordinary share and one or more other interests that are either shares or units in a unit trust: see section 139GCD of the Income Tax Assessment Act 1936.