Income Tax Assessment Act 1997

CHAPTER 6 - THE DICTIONARY  

PART 6-1 - CONCEPTS AND TOPICS  

Division 975 - Concepts about companies  

Subdivision 975-W - Wholly-owned groups of companies  

SECTION 975-505   What is a 100% subsidiary?  

975-505(1)  
A company (the subsidiary company ) is a 100% subsidiary of another company (the holding company ) if all the *shares in the subsidiary company are beneficially owned by:

(a) the holding company; or

(b) one or more 100% subsidiaries of the holding company; or

(c) the holding company and one or more 100% subsidiaries of the holding company.

975-505(2)  
However, the subsidiary company is not a 100% subsidiary of the holding company if a person is *in a position to affect rights, in relation to the subsidiary company, of:

(a) the holding company; or

(b) a 100% subsidiary of the holding company.

975-505(3)  
The subsidiary company is also not a 100% subsidiary of the holding company if at some future time a person will be *in a position to affect rights as described in subsection (2).

975-505(4)  
A company (other than the subsidiary company) is a 100% subsidiary of the holding company if, and only if:

(a) it is a 100% subsidiary of the holding company; or

(b) it is a 100% subsidiary of a 100% subsidiary of the holding company;

because of any other application or applications of this section.