sec.19Meaning of substantially Australian owned

sec.19 Meaning of substantially Australian owned

An entity is substantially Australian owned if it is— a listed corporation; or another corporation (a relevant entity ) in which a significant proportion of the shares in the corporation is directly or ultimately owned, other than as a trustee, by an Australian entity; or a listed unit trust; or another trust (also a relevant entity ) in which a significant proportion of trust interests in the trust are directly or ultimately owned, other than as a trustee, by an Australian entity. Subsection (3) applies if the commissioner can not reasonably decide if shares or trust interests in a relevant entity are ultimately owned by an Australian entity, including, for example, because of the complexity of the arrangements under which the shares or trust interests are held. Despite subsection (1) (b) and (d) , the relevant entity is substantially Australian owned if the commissioner is reasonably satisfied the shares or trust interests are probably ultimately owned by an Australian entity. Despite subsections (1) to (3) , a relevant entity is not substantially Australian owned if the commissioner considers, having regard to the relevant factors, that an ineligible individual may significantly benefit financially, other than as a trustee, from the relevant entity. For subsection (4) , the relevant factors are as follows— the terms of the documents constituting the relevant entity; the circumstances in which the relevant entity was established; the operation of the relevant entity, including, for example, the way money and other assets of the entity are, and are likely to be, dealt with and distributed; the relationship between the ineligible individual and any other person in establishing or operating the relevant entity; if the relevant entity is a trust— whether the trustee is a listed corporation, a corporation to which subsection (1) (b) applies, an Australian citizen or a permanent resident; and whether the trustee is accustomed to acting, or likely to act, in accordance with the directions or wishes of the ineligible individual; if the relevant entity is a corporation or a trust for which the trustee is a corporation, whether the corporation or its executive officers or shareholders are accustomed to acting, or likely to act, in accordance with the directions or wishes of the ineligible individual; other relevant matters. In this section— Australian entity means— a listed corporation; or a listed unit trust; or an individual who is an Australian citizen or a permanent resident. ineligible individual means an individual other than an Australian citizen or permanent resident. listed corporation means a corporation in which a significant proportion of the shares in the corporation are quoted on the market operated by the Australian Securities Exchange. listed unit trust means a unit trust in which a significant proportion of the units in the trust are quoted on the market operated by the Australian Securities Exchange. reasonably satisfied means to be satisfied on grounds that are reasonable in the circumstances. significant proportion — of shares in a corporation—means the number of shares comprising at least 75% of the value of all the shares in the corporation; or of trust interests or units in a trust—means trust interests or units comprising at least 75% of the value of all the trust interests or units in the trust. (sec.19-ssec.1) An entity is substantially Australian owned if it is— a listed corporation; or another corporation (a relevant entity ) in which a significant proportion of the shares in the corporation is directly or ultimately owned, other than as a trustee, by an Australian entity; or a listed unit trust; or another trust (also a relevant entity ) in which a significant proportion of trust interests in the trust are directly or ultimately owned, other than as a trustee, by an Australian entity. (sec.19-ssec.2) Subsection (3) applies if the commissioner can not reasonably decide if shares or trust interests in a relevant entity are ultimately owned by an Australian entity, including, for example, because of the complexity of the arrangements under which the shares or trust interests are held. (sec.19-ssec.3) Despite subsection (1) (b) and (d) , the relevant entity is substantially Australian owned if the commissioner is reasonably satisfied the shares or trust interests are probably ultimately owned by an Australian entity. (sec.19-ssec.4) Despite subsections (1) to (3) , a relevant entity is not substantially Australian owned if the commissioner considers, having regard to the relevant factors, that an ineligible individual may significantly benefit financially, other than as a trustee, from the relevant entity. (sec.19-ssec.5) For subsection (4) , the relevant factors are as follows— the terms of the documents constituting the relevant entity; the circumstances in which the relevant entity was established; the operation of the relevant entity, including, for example, the way money and other assets of the entity are, and are likely to be, dealt with and distributed; the relationship between the ineligible individual and any other person in establishing or operating the relevant entity; if the relevant entity is a trust— whether the trustee is a listed corporation, a corporation to which subsection (1) (b) applies, an Australian citizen or a permanent resident; and whether the trustee is accustomed to acting, or likely to act, in accordance with the directions or wishes of the ineligible individual; if the relevant entity is a corporation or a trust for which the trustee is a corporation, whether the corporation or its executive officers or shareholders are accustomed to acting, or likely to act, in accordance with the directions or wishes of the ineligible individual; other relevant matters. (sec.19-ssec.6) In this section— Australian entity means— a listed corporation; or a listed unit trust; or an individual who is an Australian citizen or a permanent resident. ineligible individual means an individual other than an Australian citizen or permanent resident. listed corporation means a corporation in which a significant proportion of the shares in the corporation are quoted on the market operated by the Australian Securities Exchange. listed unit trust means a unit trust in which a significant proportion of the units in the trust are quoted on the market operated by the Australian Securities Exchange. reasonably satisfied means to be satisfied on grounds that are reasonable in the circumstances. significant proportion — of shares in a corporation—means the number of shares comprising at least 75% of the value of all the shares in the corporation; or of trust interests or units in a trust—means trust interests or units comprising at least 75% of the value of all the trust interests or units in the trust.