Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A * tracing rule does not modify how the ownership tests in section 166-145 apply to the tested company in respect of all or part of the voting power in the tested company, or all or some of the rights to * dividends of, or capital in, the tested company, if:
(a) either:
(i) an entity (the controlling entity ) directly holds that power or has those rights; or
(ii) an entity (the controlling entity ) indirectly holds that power or has those rights through one or more interposed entities; and
(b) the tested company is sufficiently influenced (within the meaning of paragraph 318(6)(b) of the Income Tax Assessment Act 1936 ) by the controlling entity.
Note: However, a tracing rule can modify how the ownership tests in section 166-145 apply to the tested company in respect of voting power or dividend or capital rights held by entities other than controlling entities.
(2) A * tracing rule does not modify how the ownership tests in section 166-145 apply to the tested company in respect of all or part of the voting power in the tested company if:
(a) the tested company is a * widely held company; and
(b) that voting power:
(i) is more than 25% of the total voting power in the tested company and is controlled (whether directly, or indirectly through one or more interposed entities) by a natural person, together with his or her * associates; or
(ii) is more than 50% of the total voting power in the tested company and is controlled (whether directly, or indirectly through one or more interposed entities) by a trustee or company, together with its associates.
Table of Subdivisions
170-A Transfer of tax losses within certain wholly-owned groups of companies
170-B Transfer of net capital losses within certain wholly-owned groups of companies
170-C Provisions applying to both transfers of tax losses and transfers of net capital losses within wholly-owned groups of companies
170-D Transactions by a company that is a member of a linked group
Guide to Subdivision 170-A