Section 353 — Income Tax Assessment Act 1936: Control tracing interest in a company

(1) Subject to this section, an entity (in this subsection called the lower entity) holds a control tracing interest in a company at a particular time equal to the direct control interest in the company that the lower entity holds at that time. (2) An entity (in this subsection called the lower entity) holds a control tracing interest in a company at a particular time equal to 100% if: (a) the aggregate of the direct control interests in the company held at that time by the lower entity and its associates is not less than 50%; or (b) both of the following conditions are satisfied: (i) the aggregate of the direct control interests in the company held at that time by the lower entity and its associates is not less than 40%; (ii) at that time, the company is not controlled by a group of entities not being or including the lower entity or any of its associates; or (c) at that time, the company is controlled by the lower entity, either alone or together with associates.