INCOME TAX ASSESSMENT ACT 1936 - SECT 109BB Application of Division to closely - held corporate limited partnerships
INCOME TAX ASSESSMENT ACT 1936 - SECT 109BB
Application of Division to closely - held corporate limited partnershipsThis Division applies to a corporate limited partnership in relation to a year of income in the same way as it applies to a private company in relation to a year of income, if, any time during the year of income:
(a) the partnership has fewer than 50 members; or
(b) any entity has, directly or indirectly, and for the entity's own benefit, an entitlement to a 75% or greater share of the income or capital of the partnership.
Example: Michael has an entitlement to an 80% share of the income of 2
fixed trusts. The 2 fixed trusts have, between them, an entitlement to 100% of
the income of a corporate limited partnership. For the purposes of paragraph
(b), Michael has, indirectly, and for his own benefit, an entitlement
to a 75% or greater share of the income of the partnership.