(1) If a person or set of persons has a controlling interest in each of 2
businesses, the persons who carry on those businesses constitute a group.
Note
: Section 79 (Exclusion of persons from groups) allows the Chief Commissioner,
for payroll tax purposes, to exclude persons from a group constituted under
this section in certain circumstances.
(2) For the purposes of this section,
a person or set of persons has a controlling interest in a business if--
(a)
in the case of 1 person--the person is the sole owner (whether or not as
trustee) of the business, or
(b) in the case of a set of persons--the persons
are together as trustees the sole owners of the business, or
(c) in the case
of a business carried on by a corporation--
(i) the person or each of the set
of persons is a director of the corporation and the person or set of persons
is entitled to exercise more than 50% of the voting power at meetings of the
directors of the corporation, or
(ii) a director or set of directors of the
corporation that is entitled to exercise more than 50% of the voting power at
meetings of the directors of the corporation is under an obligation, whether
formal or informal, to act in accordance with the direction, instructions or
wishes of that person or set of persons, or
(d) in the case of a business
carried on by a body corporate or unincorporate--that person or set of persons
constitute more than 50% of the board of management (by whatever name called)
of the body or control the composition of that board, or
(e) in the case of a
business carried on by a corporation that has a share capital--that person or
set of persons can, directly or indirectly, exercise, control the exercise of,
or substantially influence the exercise of, more than 50% of the voting power
attached to the voting shares, or any class of voting shares, issued by the
corporation, or
(f) in the case of a business carried on by a
partnership--that person or set of persons--
(i) own (whether beneficially or
not) more than 50% of the capital of the partnership, or
(ii) is entitled
(whether beneficially or not) to more than 50% of the profits of the
partnership, or
(g) in the case of a business carried on under a trust--the
person or set of persons (whether or not as a trustee of, or beneficiary
under, another trust) is the beneficiary in respect of more than 50% of the
value of the interests in the first-mentioned trust.
(6) A person who may benefit from a
discretionary trust as a result of the trustee or another person, or the
trustee and another person, exercising or failing to exercise a power or
discretion, is taken, for the purposes of this Part, to be a beneficiary in
respect of more than 50% of the value of the interests in the trust.
(7) If--
(a) a person or set of persons has a controlling interest in the business of a
trust, and
(b) the trustee of the trust (whether alone or together with
another trustee or trustees) has a controlling interest in the business of a
corporation,