Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 166.235

Meaning of voting stake

  (1)   An entity holds a voting stake in a company if:

  (a)   the entity is the registered holder of * shares in the company; and

  (b)   the shares carry rights to exercise voting power in the company.

  (2)   An entity (the stakeholder ) also holds a voting stake in a company if:

  (a)   one or more other entities are interposed between the company and the stakeholder; and

  (b)   the stakeholder controls, or is able to control, voting power in the company indirectly through the interposed entity or entities.

Note:   For working out the size of a voting stake (for example, for paragraph   166 - 225(1)(a)), Subdivision   167 - B has special rules for working out voting power in a company whose shares do not all carry the same voting rights, or do not carry all of the voting rights in the company.

Meaning of dividend stake

  (3)   An entity holds a dividend stake in a company if:

  (a)   the entity is the registered holder of * shares in the company; and

  (b)   the shares carry rights to all or any * dividends that the company may pay.

  (4)   An entity (the stakeholder ) also holds a dividend stake in a company if:

  (a)   one or more other entities are interposed between the company and the stakeholder; and

  (b)   the stakeholder has the right to receive, for its own benefit and * indirectly through the interposed entity or entities, all or any * dividends that the company may pay.

Note:   For working out the size of a dividend stake (for example, for paragraph   166 - 225(1)(b)), Subdivision   167 - A has special rules for a company whose shares do not all carry the same rights to dividends.

Meaning of capital stake

  (5)   An entity holds a capital stake in a company if:

  (a)   the entity is the registered holder of * shares in the company; and

  (b)   the shares carry rights to all or any of a distribution of capital of the company.

  (6)   An entity (the stakeholder ) also holds a capital stake in a company if:

  (a)   one or more other entities are interposed between the company and the stakeholder; and

  (b)   the stakeholder has the right to receive, for its own benefit and * indirectly through the interposed entity or entities, all or any of a distribution of capital of the company.

Note:   For working out the size of a capital stake (for example, for paragraph   166 - 225(1)(c)), Subdivision   167 - A has special rules for a company whose shares do not all carry the same rights to capital distributions.

Stakes held by nominees

  (7)   For the purposes of sections   166 - 225 and 166 - 230, if:

  (a)   an entity (the nominee entity ) holds a * voting stake, a * dividend stake, or a * capital stake, in a company; and

  (b)   the nominee entity is itself a company; and

  (c)   the nominee entity holds the stake as a nominee for more than one other entity;

then, for each entity for whom a part of the stake is held by the nominee entity, that entity's part of the stake may be treated instead as a separate stake.