Victorian Consolidated Legislation

Land Tax Act 2005 - SECT 49

Further provisions for determining whether corporations are related corporations

49. Further provisions for determining whether corporations are related
corporations



(1) For the purposes of this Division-

   (a)  corporations may be related corporations whether or not they own land
        in Victoria;

   (b)  a reference to the issued share capital of a corporation does not
        include a reference to any part of it that carries no right to
        participate beyond a specified amount in a distribution of either
        profits or capital;

   (c)  subject to paragraphs (d) and (e), any shares held or power
        exercisable by a person or corporation as a trustee or nominee for
        another person or corporation are taken to be also held or exercisable
        by the other person or corporation;

   (d)  any shares held or power exercisable by a person or corporation by
        virtue of the provisions of any debentures of another corporation, or
        of a trust deed for securing any issue of any such debentures, must be
        disregarded;

   (e)  any shares held or power exercisable by, or by a nominee for, a person
        or corporation (not being held or exercisable as mentioned in
        paragraph (d)) are taken to be not held or exercisable by that person
        or corporation if-

   (i)  the ordinary business of that person or corporation includes the
        lending of money; and

   (ii) the shares are held or the power is exercisable only by way of
        security given for the purposes of a transaction entered into in the
        ordinary course of business in connection with the lending of money,
        not being a transaction entered into with an associate of that person
        or corporation within the meaning of the Corporations Act;

   (f)  the composition of a corporation's board is taken to be controlled by
        a person or another corporation if the person or other corporation, by
        the exercise of a power exercisable whether or not with the consent or
        concurrence of any other person, can appoint or remove all or a
        majority of the members of the board.

(2) Subsection (1)(f) does not limit the circumstances in which the
composition of a corporation's board is to be taken to be controlled by a
person or another corporation.