Tasmanian Consolidated Acts

PAYROLL TAX ACT 2008 - SECT 78

      (1) An entity has an "aggregate interest" in a corporation if –

(a) the entity has a direct interest and one or more indirect interests in the corporation; or

(b) the entity has more than one indirect interest in the corporation.

      (2) The value of the aggregate interest of an entity in a corporation is the sum of the following:

(a) the value of the direct interest (if any) of the entity in the corporation;

(b) the value of each indirect interest of the entity in the corporation.

      (3) For example:

(a) an entity has a direct interest (with a value of 40%) in corporation B;

(b) the entity also has a direct interest (with a value of 25%) in corporation A, which in turn has a direct interest (with a value of 60%) in corporation B. Accordingly, the entity also has an indirect interest in corporation B with a value of 15% (that is, 25% x 60%);

(c) the value of the entity's aggregate interest in corporation B is the sum of the direct interest (40%) and the indirect interest (15%), which is 55%;

(d) accordingly, in this example, the entity has a controlling interest in corporation B (within the meaning of section 73 (Groups arising from tracing of interests in corporations)).