Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 7/8)
Character Range: 7291669–7294271

820‑910, 820‑915 and 820‑920, if the first entity mentioned in subsection (1) or (2A) is a trust (other than a *public trading trust) or a partnership:
 (a) treat the reference in paragraph (1)(a) or (2A)(a) to 50% as instead being a reference to 10%; and
 (b) if subsection (2C) applies—treat the other entity mentioned in subsection (1) or (2A) as holding an *associate interest in the first entity mentioned in that subsection of 10%; and
 (c) disregard subsection 318(5) of the Income Tax Assessment Act 1936; and
 (d) if subsection (2D) applies—in determining whether an entity is an *associate of another entity, treat the benefiting entity mentioned in that subsection as being a partner in the partnership.
 (2C) This subsection applies if:
 (a) the other entity mentioned in subsection (1) or (2A) holds an *associate interest in the first entity mentioned in that subsection of less than 10%; and
 (b) it is reasonable to conclude that the entity, or one of the entities, who created the circumstance described in paragraph (a) of this subsection did so for the principal purpose of, or for more than one principal purpose that included the purpose of, ensuring that the first entity will not be an *associate entity of the other entity.
 (2D) This subsection applies if:
 (a) a trust (other than a *public trading trust) is a partner in a partnership; and
 (b) another entity (the benefiting entity) benefits under the trust (as determined in accordance with paragraph 318(6)(a) of the Income Tax Assessment Act 1936).
 (3) Subsection (1) or (2A) also has effect as if the first entity satisfies paragraph (b) of that subsection at a particular time if any of the following is expected to act in the manner mentioned in that paragraph at that time:
 (a) a director of the first entity if it is a company;
 (b) a partner of the first entity if it is a partnership;
 (c) the *general partner of the first entity if it is a *corporate limited partnership;
 (d) the trustee of the first entity if it is a trust;
 (e) a member of the first entity's committee of management if it is an unincorporated association or body.
 (3A) If:
 (a) an entity (the first entity) is an *associate entity of another entity (the head entity) under subsection (1), (2), (2A) or (3) at a particular time; and
 (b) a third entity is also an associate entity of the head entity under subsection (1), (2), (2A) or (3) at that time;
the first entity is an associate entity of the third entity at that time.
 (3B) If an entity (the first entity) is an *associate entity of another entity under subsection (1), (2), (2A),