Income Tax Assessment Act 1997
Section 290-60 applies as modified by this section if you make a contribution in respect of another person at a time, and at that time:
(a) the other person is an employee of a company in which you have a controlling interest; or
(b) you are connected to the other person in the circumstances set out in subsection (5); or
(c) you are a company connected to the other person in the circumstances described in subsection (6). 290-90(2)
Treat the other person as your employee at that time for the purposes of subsection 290-60(1) .
A deduction may be denied by section 85-25 if the employee is your associate.
Despite subsection 290-60(2) , for you to deduct the contribution the condition in subsection (4) needs to be satisfied instead of the condition in section 290-70 . 290-90(4)
The other person must be:
(aa) an employee (within the expanded meaning of employee given by section 12 of the Superannuation Guarantee (Administration) Act 1992 ) of the other person ' s employer; or
(a) engaged in producing the assessable income of the other person ' s employer; or
(b) an Australian resident engaged in the business of the other person ' s employer.
For the purposes of paragraph (1)(b), the circumstances are:
(a) you are the beneficial owner of shares in a company of which the other person is an employee, but you do not have a controlling interest in the company; and
(b) you are at *arm ' s length with the other person in relation to the contribution; and
(c) neither the other person, nor a *relative of the other person:
(i) has set apart an amount as a fund, or has made a contribution to a fund, for the purpose of providing *superannuation benefits for you or a relative of yours; or
Company controlling interest deductions 290-90(6)
(ii) has made an *arrangement under which the other person or relative will or may do so.
For the purposes of paragraph (1)(c), the circumstances are:
(a) the other person is an employee of an entity that has a controlling interest in the company; or
(b) an entity that has a controlling interest in the company also has a controlling interest in a company of which the other person is an employee.
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