Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 208.25

  (1)   An entity is effectively owned by prescribed persons at a particular time if:

  (a)   at that time:

  (i)   not less than 95% of the * accountable membership interests in the entity; or

  (ii)   not less than 95% of the * accountable partial interests in the entity;

    are held by, or held indirectly for the benefit of, prescribed persons; or

  (b)   paragraph   (a) does not apply but it would nevertheless be reasonable to conclude that, at that time, the risks involved in, and the opportunities resulting from, holding accountable membership interests, or accountable partial interests, in the entity that are not held by, or directly or indirectly for the benefit of, prescribed persons are substantially borne by, or substantially accrue to, prescribed persons.

  (2)   In deciding whether it would be reasonable to conclude as mentioned in paragraph   (1)(b):

  (a)   have regard to any * arrangement in respect of * membership interests (including unissued membership interests), or in respect of * partial interests, in the entity (including any derivatives held or issued in connection with those membership interests or partial interests) of which the entity is aware; but

  (b)   do not have regard to risks involved in the ownership of membership interests, or partial interests, in the entity that are substantially borne by any person in the person's capacity as a secured creditor.

  (3)   An entity has a partial interest in a * corporate tax entity if it has an interest in a * membership interest in the corporate tax entity.