29Related companies

#### 29 Related companies 29 Related companies > > (1) For the purposes of this section, 2 companies are related to each other— > > > > > (a) if one of those companies holds a controlling interest in the other company, or > > > > > (b) if the same person holds, or the same persons together hold, a controlling interest in both companies, or > > > > > (c) if— > > > > > > > (i) more than one-half of the issued share capital of one of those companies (in this paragraph referred to as the first company) is held by the other company (in this paragraph referred to as the second company) together with the shareholders of the second company, and > > > > > > > (ii) the proportion of the issued share capital of the second company held by shareholders of the first company is more than the difference between one-half and the proportion of the issued share capital of the first company held by the second company, or > > > > > (d) if one of those companies is related to a company to which the other of those companies is related (including a company which is related to the other of those companies by reason of another application or other applications of this paragraph). > > > (1A) A person holds, or persons together hold, a controlling interest in a company if— > > > > > (a) the person, or the persons acting together, can control the composition of the board of directors of the company, or > > > > > (b) the person is, or the persons acting together are, in a position to cast or control the casting of more than half of the maximum number of votes that might be cast at a general meeting of the company, or > > > > > (c) the person holds, or the persons acting together hold, more than half of the issued share capital of the company. > > > (2) For the purposes of determining whether companies are related, the following provisions apply— > > > > > (a) companies may be related to each other notwithstanding that those companies do not own land in New South Wales, > > > > > (a1) in subsections (1) (b) and (1A), person includes company, > > > > > (b) a reference to the issued share capital of a company does not include a reference to any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital, > > > > > (c) any shares held or power exercisable by a person or company as a trustee or a nominee for another person or company— > > > > > > > (i) are to be treated as held or exercisable by that other person or company, if the trust is a fixed trust, and > > > > > > > (ii) are to be treated as not held or exercisable by the trustee or nominee (whether or not the trust is a fixed trust), > > > > > (d) any shares held or power exercisable by a person or company by virtue of the provisions of any debentures of another company, or of a trust deed for securing any issue of any such debentures, shall be disregarded, > > > > > (e) any shares held or power exercisable by, or by a nominee for, any person or company (not being held or exercisable as mentioned in paragraph (d)) shall be treated as not held or exercisable by that person or company if the ordinary business of that person or company includes the lending of money and the shares are held or the power is exercisable only by way of security given for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money, not being a transaction entered into with a person associated with that person or company within the meaning of Division 2 of Part 1.2 of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth, > > > > > (f) without limiting by implication the circumstances in which the composition of a company’s board of directors is to be taken to be controlled by a person or another company, the composition of a company’s board of directors shall be taken to be controlled by a person or another company if that person or other company, by the exercise of some power exercisable whether with or without the consent or concurrence of any other person, can appoint or remove all or a majority of the directors. > > > (3) The Chief Commissioner, in assessing the land tax payable by companies that are related to each other and that own land in New South Wales— > > > > > (a) may assess— > > > > > > > (i) all those companies separately, > > > > > > > (ii) all those companies jointly, or > > > > > > > (iii) any 2 or more of those companies jointly and the remainder separately, and > > > > > (b) shall classify— > > > > > > > (i) 1 of those companies, or, where a joint assessment is made, the companies jointly assessed, as a concessional company, and > > > > > > > (ii) the remainder (if any) as non-concessional companies, > > > > and the companies shall be liable accordingly. > > > (4) Where 2 or more companies are jointly assessed under subsection (3), those companies shall, for the purposes of that assessment, be deemed to be a single company. > > > (5) Where 2 or more companies related to each other are liable for land tax (whether assessed separately or jointly), each company is liable jointly and severally to pay that tax. > > > (6) Section 45 of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097) applies to an amount payable under subsection (5). > > > (7) If a company is classified as a non-concessional company, the company, and each of the companies that are related to it, are members of the same group. > > **s 29:** Am 1983 No 14, Sch 1 (5). Subst 1983 No 171, Sch 1 (7). Am 1990 No 35, Sch 1 (4); 2000 No 105, Sch 3 \[5\] \[6\]; 2001 No 34, Sch 2.29; 2008 No 122, Sch 3.2 \[1\]; 2014 No 56, Sch 2 \[1\]–\[7\].