Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 719.15

  (1)   A * tier - 1 company of a * top company is an eligible tier - 1 company if subsection   (2) does not apply to the tier - 1 company.

  (2)   This subsection applies to a * tier - 1 company if:

  (a)   there are one or more entities interposed between the tier - 1 company and the * top company; and

  (b)   the conditions in subsection   (3) are satisfied in relation to at least one of those interposed entities.

  (3)   For the purposes of paragraph   (2)(b), the conditions are as follows:

  (a)   the interposed entity must be one of the following:

  (i)   a company that is a foreign resident;

  (ii)   a * prescribed dual resident;

  (iii)   a trust that does not meet the conditions in item   1, 2 or 3 of the table in section   703 - 25;

  (iv)   a trust that meets the conditions in item   1, 2 or 3 of the table in section   703 - 25 and is not a * wholly - owned subsidiary of another * tier - 1 company of the * top company;

  (v)   an entity covered by an item in the table in section   703 - 20;

  (vi)   a company that is an Australian resident, where no part of its taxable income (if any) would be taxable at a rate that is or equals the * general company rate;

  (vii)   a non - profit company (as defined in the Income Tax Rates Act 1986 ) that is a wholly - owned subsidiary of another tier - 1 company of the top company;

  (b)   the interposed entity must not hold * membership interests only as nominee of one or more entities each of which is:

  (i)   another tier - 1 company of the top company; or

  (ii)   an entity that is a wholly - owned subsidiary of another tier - 1 company of the top company;

  (c)   at least one of the following entities must hold a membership interest in the interposed entity:

  (i)   another tier - 1 company of the top company;

  (ii)   a wholly - owned subsidiary of another tier - 1 company of the top company;

  (iii)   an entity that holds membership interests only as a nominee of one or more entities each of which is mentioned in subparagraph   (i) or (ii).

  (4)   For the purposes of subparagraphs   (3)(a)(iv) and (vii) and paragraphs   (3)(b) and (c), in determining whether an entity is a wholly - owned subsidiary of another * tier - 1 company of the * top company, assume that all of the * membership interests that are beneficially owned by tier - 1 companies of the top company were owned by a single tier - 1 company of the top company.