South Australian Current Acts

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LAND TAX ACT 1936 - SECT 13G

13G—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 1 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 13H.

        (4)         Corporations are "related corporations" if—

            (a)         more than 50% of the issued share capital of 1 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 1 of the corporations ("corporation 1") is the trustee of a fixed trust or a unit trust scheme and another corporation owns, or other related corporations between them own, more than 50% of—

            (a)         where corporation 1 is the trustee of a fixed trust—the total beneficial interests in land subject to the trust; or

            (b)         where corporation 1 is the trustee of a unit trust scheme—the total number of units held by the unit holders in the scheme.

        (6)         Corporations are "related corporations" if 1 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 1 or more other applications of this subsection).

Example—

If A and B are related corporations and B and C are related corporations, then by virtue of this provision A and C will also be related corporations because they are both related to B.



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