Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p19
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 19/21)
Character Range: 44863–47461

of each other.

 (2) This section applies to an entity that directly controls a second entity as if the first entity also controlled any other entity that is directly, or indirectly by any other application or applications of this section, controlled by the second entity.

Individuals, companies and fixed trusts

 (3) An entity controls another entity if the first entity, its *STS affiliates or the first entity together with its STS affiliates:
 (a) legally or beneficially own, or have the right to acquire the legal or beneficial ownership of, interests in the other entity that carry between them the right to receive at least 40% of any distribution of income or capital by the other entity; or
 (b) if the other entity is a company—legally or beneficially own, or have the right to acquire the legal or beneficial ownership of, interests in the company that carry between them the right to exercise, or control the exercise of, at least 40% of the voting power in the company.

Non‑fixed trusts

 (4) An entity controls a trust that is not a *fixed trust if:
 (a) the trustee has made a distribution, in any of the last 4 income years (except the present year) of $100,000 or more to the entity, its *STS affiliates or the entity together with its STS affiliates; or
 (b) the entity, its *STS affiliates or the entity together with its STS affiliates:
 (i) have the power, directly or indirectly, to obtain the beneficial enjoyment of any of the capital or income of the trust; or
 (ii) are capable of gaining that enjoyment under a *scheme; or
 (c) a trustee of the trust is accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the entity, its STS affiliates or the entity together with its STS affiliates.

Partnerships

 (5) An entity controls a partnership if the entity, its *STS affiliates or the entity together with its STS affiliates have the right to at least 40% of the partnership net income, or have at least a 40% interest in assets used in the partnership *business (except assets that are leased to the partnership).

 (6) A partnership (the first entity) controls another entity if a partner in the first entity, or 2 or more partners in the first entity, have the right to receive at least 40% of the partnership net income, or have at least a 40% interest in assets used in the partnership *business, and:
 (a) if the other entity is a company—the same partner, or the same 2 or more partners, have the right to receive at least 40% of any distribution of