INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 16J - Effect of cancellation of subsidiary's shares in holding company  

SECTION 159GZZZD   159GZZZD   MEANING OF ELIGIBLE ENTITY , ELIGIBLE INTEREST AND ELIGIBLE PROPORTION  


For the purposes of this Division, where a holding company holds interests in a subsidiary of the holding company either directly or indirectly through interposed entities:


(a) a reference to an eligible entity in relation to the holding company and the subsidiary is a reference to the holding company or any of the interposed entities;


(b) a reference to an eligible interest of an eligible entity is a reference to any interest held by the eligible entity directly in the subsidiary or directly in any other eligible entity in relation to the holding company and the subsidiary; and


(c) a reference to the eligible proportion in relation to an eligible interest of an eligible entity is a reference to the proportion of the total interests held directly in the subsidiary by all persons and entities that is represented by:


(i) if the eligible entity holds the eligible interest directly in the subsidiary - the eligible interest; or

(ii) if, by virtue of holding the eligible interest, the eligible entity holds an interest in the subsidiary indirectly through another eligible entity or other eligible entities - that interest in the subsidiary.

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