70EMeanings of terms used in sections 70B, 70C and 70D

#### 70E Meanings of terms used in sections 70B, 70C and 70D Sufficient influence/majority voting interest (1) For the purposes of sections 70B, 70C and 70D: (a) a company is sufficiently influenced by an entity or entities if the company, or a majority of its directors, is accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the entity or entities (whether those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed companies, partnerships or trusts); and (b) an entity or entities hold a majority voting interest in a company if the entity or entities are in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the company. Control of trust (2) For the purposes of sections 70B, 70C and 70D, an entity controls a trust if: (a) a group in relation to the entity has a fixed entitlement to more than 50% of the capital or income of the trust; or (b) the trustee of the trust, or a majority of the trustees of the trust, is accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of a group in relation to the entity (whether those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed companies, partnerships or trusts); or (c) a group in relation to the entity is able to remove or appoint the trustee, or a majority of the trustees, of the trust. Group in relation to an entity (3) For the purposes of subsection (2): > group, in relation to an entity, means: (a) the entity acting alone; or (b) a Part 8 associate of the entity acting alone; or (c) the entity and one or more Part 8 associates of the entity acting together; or (d) 2 or more Part 8 associates of the entity acting together. Definitions (4) For the purposes of sections 70B, 70C and 70D: > company has the same meaning as in the Income Tax Assessment Act 1997. > partnership has the same meaning as in the Income Tax Assessment Act 1997.