Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 165.207

  (1)   This section applies if one or more trustees of a * family trust:

  (a)   owns * shares in a company; or

  (b)   controls, or is able to control, (whether directly, or indirectly through one or more interposed entities) voting power in a company; or

  (c)   has a right to receive (whether directly, or * indirectly through one or more interposed entities) a percentage of a * dividend or a distribution of capital of a company.

  (2)   For the purposes of a primary test, a single notional entity that is a person (but is neither a company nor a trustee) is taken to own the * shares beneficially.

Note:   For a primary test, see subsections   165 - 150(1), 165 - 155(1) and 165 - 160(1).

  (3)   For the purposes of an alternative test, a single notional entity that is a person (but is neither a company nor a trustee) is taken:

  (a)   to control, or have the ability to control, the voting power in the company; or

  (b)   to have the right to receive (whether directly or * indirectly) the percentage of the * dividend or distribution for the entity's own benefit.

Note:   For an alternative test, see subsections   165 - 150(2), 165 - 155(2) and 165 - 160(2).

  (4)   If a trustee of the trust is subsequently replaced by another trustee of the trust, the same single notional entity is taken:

  (a)   to own the * shares beneficially; or

  (b)   to control, or have the ability to control, the voting power in the company; or

  (c)   to have the right to receive (whether directly or * indirectly) the percentage of the * dividend or distribution for the entity's own benefit.