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 165-150   Who has more than 50 % of the voting power in the company  

The primary test

165-150(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 exercise more than 50 % of the voting power in the company, those persons have more than 50 % of the voting power in the company at that time.

The alternative test

165-150(2)    
Applying the alternative test: if it is the case, or it is reasonable to assume, that there are persons (none of them companies or * trustees) who (between them) at a particular time control, or are able to control (whether directly, or indirectly through one or more interposed entities) the voting power in the company, those persons have more than 50 % of the voting power in the company at that time.