78Aggregation of interests

#### 78 Aggregation of interests 78 Aggregation of interests > > (1) An entity has an aggregate interest in a corporation if— > > > > > (a) the entity has a direct interest and one or more indirect interests in the corporation, or > > > > > (b) the entity has more than one indirect interest in the corporation. > > > (2) The value of the aggregate interest of an entity in a corporation is the sum of the following— > > > > > (a) the value of the direct interest (if any) of the entity in the corporation, > > > > > (b) the value of each indirect interest of the entity in the corporation. > > > (3) For example— > > > > > (a) an entity has a direct interest (with a value of 40%) in corporation B, > > > > > (b) the entity also has a direct interest (with a value of 25%) in corporation A, which in turn has a direct interest (with a value of 60%) in corporation B. Accordingly, the entity also has an indirect interest in corporation B with a value of 15% (that is, 25% × 60%), > > > > > (c) the value of the entity’s aggregate interest in corporation B is the sum of the direct interest (40%) and the indirect interest (15%), which is 55%, > > > > > (d) accordingly, in this example, the entity has a controlling interest in corporation B (within the meaning of section 73 (Groups arising from tracing of interests in corporations)).