Constructive ownership through linked entities
In addition to any interest in land or other property that it may hold in its own right, a unit trust scheme, private company or listed company is taken, for the purposes of the landholder provisions, to hold an interest in land or other property held by a linked entity of the unit trust scheme or company.
A linked entity of a private unit trust scheme or a private company (the principal entity) means a person:
a) who is part of a chain of persons:
i) which includes the principal entity, and
ii) which is comprised of one or more links, and
iii) in which a link exists if a person would be entitled to receive not less than 50% of the unencumbered value of the property of another person in the event of a distribution of all the property of the person, and
iv) which does not include, in any of the links between the person and the principal entity, a public unit trust scheme or a listed company, and
b) who is not a public unit trust scheme or a listed company.
A linked entity of a public unit trust scheme or listed company (the principal entity) means a person who is part of a chain of persons:
a) which includes the principal entity, and
b) which is comprised of one or more links, and
c) in which a link exists if a person would be entitled to receive not less than 50% of the unencumbered value of the property of another person in the event of a distribution of all the property of the person.
The value, for duty purposes, of the interest in land or other property that a unit trust scheme, private company or listed company (being a principal entity) is taken to hold because of a holding by a linked entity, is that portion of the interest’s unencumbered value to which the unit trust scheme or company would be entitled (without regard to any liabilities of the linked entity or any other person in the ownership chain) in the event of a distribution of all the property of each entity in the chain of entities.
