INCOME TAX ASSESSMENT ACT 1997 - SECT 727.415 Rules for tracing

INCOME TAX ASSESSMENT ACT 1997 - SECT 727.415

  (1)   In applying sections   727 - 400, 727 - 405 and 727 - 410, follow the rules in this section.

Interposed entities

  (2)   Tracing is to be done through any interposed entities.

Ownership or rights held jointly

  (3)   If some of the ownership or rights of a particular kind in relation to a company or trust are held by 2 or more entities jointly or in common, each of the entities is treated as holding a proportion of the ownership or rights so held. The proportion is to be worked out on a reasonable basis, so that the total of the proportions equals the total of the ownership or rights so held.

Ownership or rights held by associate

  (4)   If, at a particular time:

  (a)   an * ultimate owner is an * associate of another ultimate owner; and

  (b)   the associate ultimately holds some of the ownership or rights of a particular kind in relation to a company or trust;

then, in determining whether the other ultimate owner is one of 2 or more ultimate owners because of whom the conditions in an item in the table in section   727 - 400 are satisfied, the ownership or rights of that kind in relation to the company or trust held by the associate at that time:

  (c)   to the extent of a particular percentage, may be treated as being instead held by the other ultimate owner; and

  (d)   to the extent so treated, cannot be treated as being instead held by any other ultimate owner of whom the first ultimate owner is an associate.

  (5)   If one or more applications of subsection   (4) are necessary to establish that an * ultimate owner is one of 2 or more ultimate owners because of whom the conditions in an item in the table in section   727 - 400 are satisfied, that subsection must be applied accordingly.