Section 52ZZC — Veterans' Entitlements Act 1986: Controlled private companies

(1) For the purposes of this Division, a company is a controlled private company in relation to an individual if the company is a designated private company and: (a) the individual passes the control test set out in subsection (2); or (b) the individual passes the source test set out in subsection (3). Control test (2) For the purposes of this section, an individual passes the control test in relation to a company if: (a) the aggregate of: (i) the direct voting interests in the company that the individual holds; and (ii) the direct voting interests in the company held by associates of the individual; is 50% or more; or (b) the aggregate of: (i) the direct control interests in the company that the individual holds; and (ii) the direct control interests in the company held by associates of the individual; is 15% or more; or (c) the company is sufficiently influenced by: (i) the individual; or (ii) an associate of the individual; or (iii) 2 or more entities covered by the preceding subparagraphs; or (d) the individual (either alone or together with associates) is in a position to exercise control over the company. Source test (3) For the purposes of this section, an individual passes the source test in relation to a company if: (a) the individual has transferred property or services to the company after 7.30 pm, by standard time in the Australian Capital Territory, on 9 May 2000; and (b) the underlying transfer was made for no consideration or for a consideration less than the arm’s length amount in relation to the underlying transfer. No double counting (4) In calculating the aggregate referred to in paragraph (2)(a), a direct voting interest held because of subsection 52ZZD(2) is not to be counted under subparagraph (2)(a)(i) to the extent to which it is calculated by reference to a direct voting interest in the company that is taken into account under subparagraph (2)(a)(ii). (5) In calculating the aggregate referred to in paragraph (2)(b), a direct control interest held because of subsection 52ZZF(4) is not to be counted under subparagraph (2)(b)(i) to the extent to which it is calculated by reference to a direct control interest in the company that is taken into account under subparagraph (2)(b)(ii).