78Aggregation 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 1 or more indirect interests in the corporation; or (b) the entity has more than 1 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; and

Payroll Tax Act 2009 51 (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%); and (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%; and (d) accordingly, in this example, the entity has a controlling interest in corporation B (within the meaning of section 73).