Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p19
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 19/35)
Character Range: 3257256–3259820

of the contractual or other rights is *taxable Australian property;
 (iii) if the deferral event is a CGT event A1, B1 or F1—the asset or the subject of the lease, as the case may be, was *taxable Australian property immediately before the deferral event;
 (iv) if the deferral event is a CGT event D2—the option was taxable Australian property immediately after the deferral event;
 (v) if subparagraph (b)(ii) or (iii) applies—the originating company is a foreign resident at the time of the deferral event; and
 (e) at the time of the deferral event, the originating company is a member of a *linked group and one of the following applies:
 (i) the other entity is a company that is not a connected entity of the originating company and is a member of that linked group;
 (ii) the other entity is a connected entity of the originating company;
 (iii) the other entity is an *associate of such a connected entity.
 (2) Despite subsection (1):
 (a) this Subdivision does not apply because of *CGT event B1 if title in the *CGT asset does not pass to the other entity when the agreement ends; and
 (b) this Subdivision does not apply if the deferral event involves the *acquisition of a greater than 50% interest in a CGT asset by an entity other than an entity referred to in subparagraph (1)(e)(i), (ii) or (iii).

170‑260  Linked group
 (1) Companies that are linked to one another are a linked group.
 (2) Two companies are linked to each other if:
 (a) one of them has a controlling stake in the other; or
 (b) the same entity has a controlling stake in each of them.
 (3) For the purposes of this section, an entity has a controlling stake in a company at a particular time if the entity, or the entity and the entity's *associates between them:
 (a) are able at that time to exercise, or control the exercise of, more than 50% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or
 (b) have at that time the right to receive for their own benefit (either directly, or indirectly through one or more interposed entities) more than 50% of any dividends that the company may pay; or
 (c) have at that time the right to receive for their own benefit (either directly, or indirectly through one or more interposed entities) more than 50% of any distribution of capital of the company.
Note: Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.
 (4) If:
 (a) apart from this