INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 1C - Payment of instalments by companies and certain trustees  

Subdivision BA - Instalment taxpayer groups  

SECTION 221AZMC  

221AZMC   WHEN ONE INSTALMENT TAXPAYER CONTROLS ANOTHER  
For the purposes of section 221AZMB , an instalment taxpayer ( ``the first taxpayer'' ) controls another instalment taxpayer ( ``the second taxpayer'' ) if, and only if:

(a) the second taxpayer is a company and:

(i) the first taxpayer is in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the second taxpayer; or

(ii) the first taxpayer has the power to appoint or remove the majority of the directors of the second taxpayer; or

(iii) the second taxpayer is, or a majority of its directors are, accustomed or under an obligation, whether formal or informal to act according to the directions, instructions or wishes of the first taxpayer; or

(b) the second taxpayer is a trustee covered by any of paragraphs 221AZK(1)(b) and (c) and:

(i) the first taxpayer beneficially owns, or is able in any way, whether directly or indirectly, to control the application of, more than 50% of the interests in the trust property or in the trust income; or

(ii) the first taxpayer has the power to appoint or remove the trustee of the trust; or

(iii) the trustee of the trust is accustomed or under an obligation, whether formal or informal, to act according to the directions, instructions or wishes of the first taxpayer; or

(c) in any case - the first taxpayer is taken, because of any other application or applications of this subsection, to control an instalment taxpayer that in turn is so taken to control the second taxpayer.