Payroll Tax Act 2008
78Aggregation of interests
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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% x 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)).