Section 121AP — Income Tax Assessment Act 1936: Subsidiary and wholly-owned subsidiary

Subsidiary (1) A company (the test company) is a subsidiary of another company (the holding company) if at least half of the shares in the test company are beneficially owned by: (a) the holding company; or (b) a company that is, or 2 or more companies each of which is, a subsidiary of the holding company; or (c) the holding company and a company that is, or 2 or more companies each of which is, a subsidiary of the holding company. (2) If a company is a subsidiary of another company (including because of this subsection), every company that is a subsidiary of the first-mentioned company is a subsidiary of the other company. Wholly-owned subsidiary (3) A company is a wholly-owned subsidiary of another company if it would, under subsection (1) or (2), be a subsidiary of the other company assuming that the reference in subsection (1) to at least half of the shares were instead a reference to all of the shares.