Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies for the purposes of section 328 - 115 to determine whether an entity (the test entity ) is a * CGT small business entity for the purposes of subsection 152 - 10(1A) or (1B).
(2) An entity (the deemed entity ) is taken to be an * affiliate of, or * connected with, the test entity (as the case requires) if:
(a) the deemed entity is an affiliate of, or connected with, the entity that owns the * CGT asset referred to in subsection 152 - 10(1A) or (1B); and
(b) the deemed entity is not (apart from this section) an affiliate of, or connected with, the test entity.
Note: Paragraphs (a) and (b)--the meaning of connected with is affected by section 152 - 78.
(3) If:
(a) the entity that owns the * CGT asset referred to in subsection 152 - 10(1B) is a partner in 2 or more partnerships; and
(b) the asset is:
(i) used, or held ready for use, in the course of carrying on a * business that is carried on by at least 2 of those partnerships; or
(ii) inherently connected with businesses that are carried on by at least 2 of those partnerships;
then, each partnership referred to in paragraph (b) that is not (apart from this section) * connected with the test entity is taken to be connected with the test entity.