56NCorporation to which Division applies

56N Corporation to which Division applies (1) This Division applies to a land-holding corporation in which a person acquires a relevant acquisition. (2) A land-holding corporation is a corporation entitled to land that has an unencumbered value of at least $500 000. 56NA Linked entity (1) A linked entity of a corporation is a person who is part of a chain of persons: (a) that includes the corporation; and (b) that is comprised of one or more links; and (c) in which a link exists if a person, whether alone or together with other linked entities, would be entitled to receive at least 20% of the unencumbered value of the property of another person in the chain (the property-holder). (2) For subsection (1)(c), a person's entitlement at a particular time is determined in the following way: (a) if the property-holder is a corporation – as an entitlement to participate as a shareholder in the distribution of the property on a winding-up of the corporation, at that time, calculated in accordance with section 56C(6); (b) if the property-holder is a trustee of a trust – as an entitlement on the distribution of the trust, at that time, determined in accordance with section 56C(7). 56NB Unencumbered value of land of corporation (1) The unencumbered value of land to which a corporation is entitled at a particular time is the aggregate of the following amounts: (a) the unencumbered value, at that time, of land to which the corporation is entitled in its own right;

Stamp Duty Act 1978 65 (b) the portion of the unencumbered value, at that time, of land to which the corporation would be entitled if each linked entity were to be wound up. (2) For subsection (1)(b), the portion of the unencumbered value to which the corporation would be entitled is the value determined without regard to any liabilities of a linked entity. (3) For this section: (a) a person is taken to be entitled to land that is subject to an agreement for the sale or purchase of the land by the person; and (b) a person who is entitled to land as a co-owner of the land is taken to be entitled to the whole of the land unless the Commissioner is satisfied the reason for the person being a co-owner is not to defeat the object of this Division.