Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 165 - Income tax consequences of changing ownership or control of a company  

Subdivision 165-D - Tests for finding out whether the company has maintained the same owners  

The primary and alternative tests

SECTION 165-160   Who has rights to more than 50 % of the company's capital distributions  

The primary test

165-160(1)    
Applying the primary test: if there are persons who, at a particular time, beneficially own (between them) * shares that carry (between them) the right to receive more than 50 % of any distribution of capital of the company, those persons have rights to more than 50 % of the company's capital distributions at that time.

The alternative test

165-160(2)    
Applying the alternative test: if it is the case, or it is reasonable to assume, that there are persons (none of them companies) who (between them) at a particular time have the right to receive for their own benefit (whether directly or * indirectly) more than 50 % of any distribution of capital of the company, those persons have rights to more than 50 % of the company's capital distributions at that time.