Section 73 - Payroll Tax Act 2007 - Groups arising from tracing of interests in corporations

73Groups arising from tracing of interests in corporations

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73 Groups arising from tracing of interests in corporations

(1) An entity and a corporation form part of a group if the entity has a controlling interest in the corporation.

Note.

Section 79 (Exclusion of persons from groups) allows the Chief Commissioner, for payroll tax purposes, to exclude persons from a group constituted under this section in certain circumstances.

(2) For the purposes of this section, an entity has a controlling interest in a corporation if the corporation has share capital and—

(a) the entity has a direct interest in the corporation and the value of that direct interest exceeds 50%, or

(b) the entity has an indirect interest in the corporation and the value of that indirect interest exceeds 50%, or

(c) the entity has an aggregate interest in the corporation and the value of the aggregate interest exceeds 50%.

(3) Division 3 applies for the purposes of the interpretation of this section.

Note.

Division 3 sets out the manner for determining whether an entity has a direct interest, indirect interest or aggregate interest in a corporation, and the value of such an interest.

(4) In this section—

associated person means a person who is associated with another person in accordance with any of the following provisions—

(a) persons are associated persons if they are related persons,

(b) natural persons are associated persons if they are partners in a partnership,

(c) private companies are associated persons if common shareholders have a majority interest in each private company,

(d) trustees are associated persons if any person is a beneficiary common to the trusts (not including a public unit trust scheme) of which they are trustees,

(e) a private company and a trustee are associated persons if a related body corporate of the company (within the meaning of the Corporations Act 2001 of the Commonwealth) is a beneficiary of the trust (not including a public unit trust scheme) of which the trustee is a trustee.

domestic partner of a person means a person to whom the person is not married but with whom the person is living as a couple on a genuine domestic basis (irrespective of gender).