Section 30: Association through a trustee
124.This section deals with some holdings by trustees. It is new. See Change 3 in Annex 1.
125.Subsections (1) and (2) deal with the case of two companies which would otherwise be associated with each other because they are controlled by the same trustees. If the trustees controlling each companyare treated as different “distinct” persons by section 474(1) of ITA the companies are not controlled by the same person and this section does not apply.
126.If this section applies,the rights or powers of the trustees are to be ignored in determining whether the companies are associated with each other. This treatment applies only if there is no other connection between the companies (see subsection (1)(b)).
127.Subsection (3)(b) means that subsection (1)(b) restatesthe condition in ESC C9 that there is “no past or present connection” between the companies. It reflects the strict interpretation that is used in practice in applying the concession.
