INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
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Hide history noteThis section sets out the meaning of controlling individual of (in turn) a company, a fixed trust and any other trust.
160ZZPZP(2) Companies.An individual is the controlling individual of a company at a particular time if, at that time, the individual:
(a) is an employee (see subsection (6)) of the company; and
(b) holds all of the legal and equitable interests in shares that carry (between them) the right to exercise at least 50% of the voting power in the company; and
(c) holds all of the legal and equitable interests in shares that carry (between them) the right to receive at least 50% of any dividends that the company may pay; and
(d) holds all of the legal and equitable interests in shares that carry (between them) the right to receive at least 50% of any distribution of capital of the company. 160ZZPZP(3) Control of fixed trusts.
An individual is the controlling individual of a fixed trust (see subsection (5)) at a particular time if, at that time, the individual:
(a) is an employee (see subsection (6)) of the trust; and
(b) has, for his or her own benefit, entitlements to at least a 50% share of the income of the trust; and
(c) has, for his or her own benefit, entitlements to at least a 50% share of the capital of the trust. 160ZZPZP(4) Control of other trusts.
An individual is the controlling individual of a trust, other than a fixed trust, at a particular time (the test time ) if:
(a) the individual is an employee (see subsection (6)) of the trust at the test time; and
(b) the trust passes the pattern of distributions test, for the test year, in relation to the individual (see section 160ZZPZQ ). 160ZZPZP(5) Fixed trust.
A trust is a fixed trust if persons have entitlements to all of the income and capital of the trust.
160ZZPZP(6) Employee.In this section:
employee
has the same meaning as in the
Superannuation Guarantee (Administration) Act 1992
, except that subsection
12(11)
of that Act is to be disregarded.
For the purposes of subsection (2), a person who, at a particular time, holds a legal or equitable interest in a share:
(a) that is liable to be redeemed; or
(b) that, at the option of the company that issued it, is liable to be redeemed;
is taken not to hold the interest at that time.
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