New South Wales Consolidated Acts

PAYROLL TAX ACT 2007 - SECT 74A

74A Groups arising from former entities

(1) An entity (the
"successor" ) and a former entity constitute a group if the successor and the former entity are or were both sufficiently influenced by the same other person (the
"third party" ).

(2) For this section, a successor or former entity is
"sufficiently influenced" by a third party if the successor or former entity is accustomed or under an obligation, whether formal or informal, or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the third party.

(3) Subsection (2) applies whether the directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or indirectly through another person.

(4) The Chief Commissioner may determine that an entity and a former entity who would, but for the determination, be a member of a group under subsection (1) are not part of a group if the Chief Commissioner is satisfied the influence of the third party is not, or was not, intended to avoid tax or other commercial obligations.

(5) In this section-

"entity" includes-

(a) a person, and

Note-: Under the Interpretation Act 1987 , Schedule 4, a person includes an individual, a corporation and a body corporate or politic.

(b) a company, and

(c) a trustee of a trust.

"former entity" includes-

(a) a corporation that is in administration or being wound up, if the Chief Commissioner is satisfied the Chief Commissioner will not be able to recover from the corporation the amount the Chief Commissioner is entitled to recover from the corporation, and

(b) a corporation that is deregistered under the Corporations Act 2001 of the Commonwealth, Chapter 5A, and

(c) a person who was a trustee of a trust but is no longer a trustee of the trust, whether or not the trust is dissolved.