Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 18/20)
Character Range: 6672507–6675236

nexus within a period
727‑405 Ultimate stake of a particular percentage in a company
727‑410 Ultimate stake of a particular percentage in a fixed trust
727‑415 Rules for tracing

Ultimate controller

727‑350  Ultimate controller
  An entity is an ultimate controller of another entity if, and only if:
 (a) the first entity *controls (for value shifting purposes) the other entity; and
 (b) there is no entity that controls (for value shifting purposes) both the first entity and the other entity.

727‑355  Control (for value shifting purposes) of a company

50% stake test
 (1) An entity controls (for value shifting purposes) a company if the entity, or the entity and its *associates between them:
 (a) can exercise, or can control the exercise of, at least 50% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or
 (b) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 50% of any dividends that the company may pay; or
 (c) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 50% of any distribution of capital of the company.

40% stake test
 (2) An entity also controls (for value shifting purposes) a company if the entity, or the entity and its *associates between them:
 (a) can exercise, or can control the exercise of, at least 40% of the voting power in the company (either directly, or indirectly through one or more interposed entities); or
 (b) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any dividends that the company may pay; or
 (c) have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any distribution of capital of the company;
unless an entity (other than the first entity and its associates) either alone or together with its associates in fact controls the company.

Actual control test
 (3) An entity also controls (for value shifting purposes) a company if the entity, either alone or together with its *associates, in fact controls the company.

727‑360  Control (for value shifting purposes) of a fixed trust

40% stake test
 (1) An entity controls (for value shifting purposes) a *fixed trust if the entity, or the entity and its *associates between them, have the right to receive (either directly, or indirectly through one or more interposed entities) at least 40% of any distribution of trust income, or trust capital, to beneficiaries of the trust.

Other tests
 (2) An entity also controls (for value shifting purposes) a *fixed trust if:
 (a) the entity, or an *associate of the entity,