A New Tax System (Goods and Services Tax) Act 1999
Chapter 6
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Interpreting this Act
Part 6-2
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Meaning of some important concepts
Division 190
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90% owned groups of companies
190-5
When a company has at least a 90% stake in another company
A * company (the holding company ) has at least a 90% stake in another company (the subsidiary company ) if the holding company:
(a) controls, or is able to control, at least 90% of the voting power in the subsidiary company (whether directly, or indirectly through one or more interposed companies); and
(b) has the right to receive (whether directly, or indirectly through one or more interposed companies) at least 90% of any * dividends that the subsidiary company may pay; and
(c) has the right to receive (whether directly, or indirectly through one or more interposed companies) at least 90% of any distribution of capital of the subsidiary company.
A * company (the holding company ) has at least a 90% stake in another company (the subsidiary company ) if the holding company:
(a) controls, or is able to control, at least 90% of the voting power in the subsidiary company (whether directly, or indirectly through one or more interposed companies); and
(b) has the right to receive (whether directly, or indirectly through one or more interposed companies) at least 90% of any * dividends that the subsidiary company may pay; and
(c) has the right to receive (whether directly, or indirectly through one or more interposed companies) at least 90% of any distribution of capital of the subsidiary company.
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