sec.71Groups of commonly controlled businesses

### sec.71 Groups of commonly controlled businesses If a person or set of persons has a controlling interest in each of 2 businesses, the persons who carry on those businesses constitute a group. Section 74 allows the commissioner to exclude, for payroll tax and mental health levy purposes, persons from a group constituted under this section in some circumstances. For this section, a person or set of persons has a controlling interest in a business if any of the following applies— for 1 person—the person is the sole owner of the business, whether or not as trustee; for a set of persons—together the persons are the sole owners of the business as trustees; for a business carried on by a corporation— the person or each person in the set of persons is a director of the corporation, and the person or set of persons is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation; or a director or set of directors of the corporation that is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation is under an obligation, whether formal or informal, to act in accordance with the direction, instruction or wishes of the person or set of persons; for a business carried on by a body corporate or unincorporate—the person or set of persons constitute more than 50% of, or control the composition of, the board of management, by whatever name called, of the body; for a business carried on by a corporation with a share capital—the person or set of persons can, directly or indirectly, exercise, control the exercise of, or substantially influence the exercise of, more than 50% of the voting power attached to the voting shares, or a class of voting shares, issued by the corporation; for a business carried on by a partnership—the person or set of persons— own, whether beneficially or not, more than 50% of the capital of the partnership; or is entitled, whether beneficially or not, to more than 50% of the profits of the partnership; for a business carried on under a trust—the person or set of persons, whether or not as the trustee or beneficiary of another trust, is the beneficiary in respect of more than 50% of the value of the interests in the trust under which the business is carried on. If— 2 corporations are related bodies corporate; and 1 of the corporations has a controlling interest in a business; the other corporation has a controlling interest in the business. If— a person or set of persons has a controlling interest in a business; and a person or set of persons who carry on the business has a controlling interest in another business; the person or set of persons mentioned in paragraph (a) has a controlling interest in the other business. If— a person or set of persons is the beneficiary of a trust in respect of more than 50% of the value of the interests in the trust; and the trustee of the trust, whether alone or together with another trustee or trustees, has a controlling interest in the business of another trust; the person or set of persons has a controlling interest in the business. A person who may benefit from a discretionary trust as a result of the trustee or another person, or the trustee and another person, exercising or failing to exercise a power or discretion, is taken for this part to be a beneficiary of the trust in respect of more than 50% of the value of the interests in the trust. If— a person or set of persons has a controlling interest in the business of a trust; and the trustee of the trust, whether alone or together with another trustee or trustees, has a controlling interest in the business of a corporation; the person or set of persons has a controlling interest in the business of the corporation. If— a person or set of persons has a controlling interest in the business of a trust; and the trustee of the trust, whether alone or together with 1 or more other trustees, has a controlling interest in the business of a partnership; the person or set of persons has a controlling interest in the business of the partnership. s 71 ins 1975 No. 80 s 14 amd 1984 No. 4 s 13 ; 2000 No. 48 s 10 sub 2008 No. 16 s 15 amd 2009 No. 19 s 73 ; 2022 No. 30 s 47 (sec.71-ssec.1) If a person or set of persons has a controlling interest in each of 2 businesses, the persons who carry on those businesses constitute a group. Section 74 allows the commissioner to exclude, for payroll tax and mental health levy purposes, persons from a group constituted under this section in some circumstances. (sec.71-ssec.2) For this section, a person or set of persons has a controlling interest in a business if any of the following applies— for 1 person—the person is the sole owner of the business, whether or not as trustee; for a set of persons—together the persons are the sole owners of the business as trustees; for a business carried on by a corporation— the person or each person in the set of persons is a director of the corporation, and the person or set of persons is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation; or a director or set of directors of the corporation that is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation is under an obligation, whether formal or informal, to act in accordance with the direction, instruction or wishes of the person or set of persons; for a business carried on by a body corporate or unincorporate—the person or set of persons constitute more than 50% of, or control the composition of, the board of management, by whatever name called, of the body; for a business carried on by a corporation with a share capital—the person or set of persons can, directly or indirectly, exercise, control the exercise of, or substantially influence the exercise of, more than 50% of the voting power attached to the voting shares, or a class of voting shares, issued by the corporation; for a business carried on by a partnership—the person or set of persons— own, whether beneficially or not, more than 50% of the capital of the partnership; or is entitled, whether beneficially or not, to more than 50% of the profits of the partnership; for a business carried on under a trust—the person or set of persons, whether or not as the trustee or beneficiary of another trust, is the beneficiary in respect of more than 50% of the value of the interests in the trust under which the business is carried on. (sec.71-ssec.3) If— 2 corporations are related bodies corporate; and 1 of the corporations has a controlling interest in a business; the other corporation has a controlling interest in the business. (sec.71-ssec.4) If— a person or set of persons has a controlling interest in a business; and a person or set of persons who carry on the business has a controlling interest in another business; the person or set of persons mentioned in paragraph (a) has a controlling interest in the other business. (sec.71-ssec.5) If— a person or set of persons is the beneficiary of a trust in respect of more than 50% of the value of the interests in the trust; and the trustee of the trust, whether alone or together with another trustee or trustees, has a controlling interest in the business of another trust; the person or set of persons has a controlling interest in the business. (sec.71-ssec.6) A person who may benefit from a discretionary trust as a result of the trustee or another person, or the trustee and another person, exercising or failing to exercise a power or discretion, is taken for this part to be a beneficiary of the trust in respect of more than 50% of the value of the interests in the trust. (sec.71-ssec.7) If— a person or set of persons has a controlling interest in the business of a trust; and the trustee of the trust, whether alone or together with another trustee or trustees, has a controlling interest in the business of a corporation; the person or set of persons has a controlling interest in the business of the corporation. (sec.71-ssec.8) If— a person or set of persons has a controlling interest in the business of a trust; and the trustee of the trust, whether alone or together with 1 or more other trustees, has a controlling interest in the business of a partnership; the person or set of persons has a controlling interest in the business of the partnership. - (a) for 1 person—the person is the sole owner of the business, whether or not as trustee; - (b) for a set of persons—together the persons are the sole owners of the business as trustees; - (c) for a business carried on by a corporation— (i) the person or each person in the set of persons is a director of the corporation, and the person or set of persons is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation; or (ii) a director or set of directors of the corporation that is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation is under an obligation, whether formal or informal, to act in accordance with the direction, instruction or wishes of the person or set of persons; - (i) the person or each person in the set of persons is a director of the corporation, and the person or set of persons is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation; or - (ii) a director or set of directors of the corporation that is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation is under an obligation, whether formal or informal, to act in accordance with the direction, instruction or wishes of the person or set of persons; - (d) for a business carried on by a body corporate or unincorporate—the person or set of persons constitute more than 50% of, or control the composition of, the board of management, by whatever name called, of the body; - (e) for a business carried on by a corporation with a share capital—the person or set of persons can, directly or indirectly, exercise, control the exercise of, or substantially influence the exercise of, more than 50% of the voting power attached to the voting shares, or a class of voting shares, issued by the corporation; - (f) for a business carried on by a partnership—the person or set of persons— (i) own, whether beneficially or not, more than 50% of the capital of the partnership; or (ii) is entitled, whether beneficially or not, to more than 50% of the profits of the partnership; - (i) own, whether beneficially or not, more than 50% of the capital of the partnership; or - (ii) is entitled, whether beneficially or not, to more than 50% of the profits of the partnership; - (g) for a business carried on under a trust—the person or set of persons, whether or not as the trustee or beneficiary of another trust, is the beneficiary in respect of more than 50% of the value of the interests in the trust under which the business is carried on. - (i) the person or each person in the set of persons is a director of the corporation, and the person or set of persons is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation; or - (ii) a director or set of directors of the corporation that is entitled to exercise more than 50% of the voting power at meetings of the directors of the corporation is under an obligation, whether formal or informal, to act in accordance with the direction, instruction or wishes of the person or set of persons; - (i) own, whether beneficially or not, more than 50% of the capital of the partnership; or - (ii) is entitled, whether beneficially or not, to more than 50% of the profits of the partnership; - (a) 2 corporations are related bodies corporate; and - (b) 1 of the corporations has a controlling interest in a business; - (a) a person or set of persons has a controlling interest in a business; and - (b) a person or set of persons who carry on the business has a controlling interest in another business; - (a) a person or set of persons is the beneficiary of a trust in respect of more than 50% of the value of the interests in the trust; and - (b) the trustee of the trust, whether alone or together with another trustee or trustees, has a controlling interest in the business of another trust; - (a) a person or set of persons has a controlling interest in the business of a trust; and - (b) the trustee of the trust, whether alone or together with another trustee or trustees, has a controlling interest in the business of a corporation; - (a) a person or set of persons has a controlling interest in the business of a trust; and - (b) the trustee of the trust, whether alone or together with 1 or more other trustees, has a controlling interest in the business of a partnership;