Victorian Consolidated Legislation

Land Tax Act 2005 - SECT 47

What are related corporations?

47. What are related corporations?



(1) For the purposes of this Division, corporations are related corporations
in any of the circumstances specified in this section.

(2) Corporations are related corporations if one of those corporations-

   (a)  controls the composition of the board of the other corporation; or

   (b)  is in a position to cast, or control the casting of, more than 50% of
        the maximum number of votes that might be cast at a general meeting of
        the other corporation; or

   (c)  holds more than 50% of the issued share capital of the other
        corporation.

(3) Corporations are related corporations if the same person has, or the same
persons have together, a controlling interest in each of the corporations.

Note controlling interest is defined in section 48.

(4) Corporations are related corporations if-

   (a)  more than 50% of the issued share capital of one of those corporations
        (corporation 1) is held by the other corporation (corporation 2)
        together with the shareholders of corporation 2; and

   (b)  the percentage of the issued share capital of corporation 2 held by
        shareholders of corporation 1 is more than the difference between 50%
        and the percentage of the issued share capital of corporation 1 held
        by corporation 2.

(5) Corporations are related corporations if one of those corporations is a
related corporation of a corporation of which the other of those corporations
is a related corporation (including a corporation that is a related
corporation of the other of those corporations because of one or more other
applications of this subsection).