INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 8 - Definitions etc.  

SECTION 682   MEANING OF GROUP COMPANY AND ASSOCIATED TERMS  

682(1)   [Definitions]  

A company (the first company ) is a group company of another company (the second company ) at a particular time if:

(a) the first company is the holding company (see subsection (2)) of the second company; or

(b) the first company is a wholly-owned subsidiary (see subsection (3)) of the second company; or

(c) the first company is a wholly-owned subsidiary of another company of which the second company is also a wholly-owned subsidiary; or

(d) the first company is a wholly-owned subsidiary (see subsection (4)) of other companies of which the second company is also a wholly-owned subsidiary.

682(2)   Meaning of holding company.  

A company (the first company ) is the holding company of another company (the second company ) at a particular time (the test time ) if:

(a) the first company is an eligible public company (see subsection (6)) in relation to its year of income in which the test time occurred; and

(b) the second company is an eligible subsidiary (see subsection (5)) in relation to its year of income in which the test time occurred; and

(c) at the test time, all of the shares in the second company were beneficially owned by:

(i) the first company; or

(ii) another company that is an eligible subsidiary in relation to its year of income in which the test time occurred; or

(iii) 2 or more companies of the kind mentioned in subparagraph (ii) or the first company and a company or companies of the kind mentioned in that subparagraph; and

(d) in a case where, at the test time, any of the shares in the second company were beneficially owned by a company other than the first company - the first company would have had a right to receive, indirectly, or directly and indirectly, for its own benefit the whole of a dividend if:

(i) the second company had declared the dividend at the relevant time; and

(ii) there have been successive distributions of the relative parts of the dividend to and by each company, and any trustee, interposed between the second and the first company.

682(3)   Meaning of wholly-owned subsidiary of one company.  

A company is a wholly-owned subsidiary of another company if the other company is its holding company.

682(4)   Meaning of wholly-owned subsidiary of 2 or more companies.  

A company (the first company ) is a wholly-owned subsidiary of 2 or more other companies (the parent companies ) at a particular time (the test time ) if:

(a) the first company is an eligible subsidiary in relation to its year of income in which the test time occurred; and

(b) each of the parent companies is an eligible public company in relation to its year of income in which the test time occurred; and

(c) at the test time, all of the shares in the first company were beneficially owned by:

(i) the parent companies; or

(ii) another company that is an eligible subsidiary in relation to its year of income in which the test time occurred; or

(iii) 2 or more companies of the kind mentioned in subparagraph (ii) or any one or more of the parent companies and a company or companies of the kind mentioned in that subparagraph; and

(d) in a case where, at the test time, any of the shares in the first company were beneficially owned by a company other than one of the parent companies - the parent companies would have had rights between them to receive, indirectly, or directly and indirectly, for their benefit, the whole of a dividend if:

(i) the first company had declared a dividend at the test time; and

(ii) there had been successive distributions of the relative parts of the dividend to and by each company, and any trustee, interposed between the first company and the parent companies.

682(5)   Meaning of eligible subsidiary.  

A company is an eligible subsidiary in relation to a year of income if, because of subsection 103A(4) , the company is a subsidiary of a public company in relation to the year of income for the purposes of subparagraph 103A(2)(d)(v) .

682(6)   Meaning of eligible public company.  

A company is an eligible public company in relation to a year of income if, because of paragraph 103A(2)(a) , the company is a public company in relation to the year of income for the purposes of subsection 103A(1) .