Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 501

             (1)  For the purposes of this section, a company has a direct ownership interest in another company at a particular time equal to the percentage of the paid‑up share capital of the other company of which the first‑mentioned company is the owner at that time.

             (2)  The percentage of the paid‑up share capital of a company ( the bottom company ) of which another company ( the top company ) is the indirect owner at a particular time ( the indirect ownership interest ) is calculated in accordance with this section.

             (3)  If there is only one company interposed between the top company and the bottom company, the indirect ownership interest is calculated by multiplying the direct ownership interest that the top company holds in the interposed company by the direct ownership interest that the interposed company holds in the bottom company.

             (4)  If there are 2 companies interposed between the top company and the bottom company, the indirect ownership interest is calculated:

                     (a)  by multiplying the direct ownership interest that the top company holds in the first interposed company by the direct ownership interest that the first interposed company holds in the second interposed company; and

                     (b)  by multiplying the result of the calculation referred to in paragraph (a) by the direct ownership interest that the second interposed company holds in the bottom company.

             (5)  If there are 3 or more companies interposed between the top company and the bottom company, the indirect ownership interest is calculated:

                     (a)  by multiplying the direct ownership interest that the top company holds in the first interposed company by the direct ownership interest that the first interposed company holds in the second interposed company; and

                     (b)  by multiplying the result of the calculation referred to in paragraph (a) by the direct ownership interest that the second interposed company holds in the third interposed company;

and so on, ending with a multiplication by the direct ownership interest that the last interposed company holds in the bottom company.