Taxation (Multinational - Global and Domestic Minimum Tax) Act 2024

PART 5 - INTERPRETATION  

Division 3 - Ownership Interests and Ownership Interest Percentages  

SECTION 38   MEANINGS OF OWNERSHIP INTEREST, DIRECT OWNERSHIP INTEREST AND INDIRECT OWNERSHIP INTEREST  

38(1)    
An Ownership Interest in an Entity or in a Permanent Establishment is:

(a)    a Direct Ownership Interest in the Entity or Permanent Establishment; or

(b)    an Indirect Ownership Interest in the Entity or Permanent Establishment.

38(2)    
A Direct Ownership Interest in an Entity is an interest (whether by way of shares, other security or otherwise) that:

(a)    carries rights to a share of the profits, capital or reserves of the Entity (whether on the making of a distribution of profits, winding up or otherwise); and

(b)    would be classified as equity under the financial accounting standard used in the preparation of the relevant Consolidated Financial Statements (disregarding any requirement in those Consolidated Financial Statements to consolidate the assets, liabilities, income, expenses and cash flows of the Entity).

38(3)    
However, an interest is not a Direct Ownership Interest in an Entity if it is of a kind prescribed by the Rules.

38(4)    
The Main Entity in respect of a Permanent Establishment is taken to hold a Direct Ownership Interest in the Permanent Establishment.

Note:

38(5)    
An Entity (the first entity ) holds an Indirect Ownership Interest in another Entity or a Permanent Establishment (the other entity/PE ) if the first entity holds a Direct Ownership Interest in:

(a)    another Entity that holds a Direct Ownership Interest in the other entity/PE; or

(b)    another Entity that holds an Indirect Ownership Interest in the other entity/PE under one or more other applications of this subsection.