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IC 3: Common ownership: group of companies
or “When companies are considered a group due to shared ownership”
You could also call this:

“Companies that are fully owned by the same group of people”

A wholly-owned group of companies is when two or more companies are fully owned by the same group of people. This means that for the relevant time period, these people have all the voting rights and, if needed, all the market value interests in these companies.

When figuring out if a group is wholly-owned, you don’t need to count some special shares. These are shares held by a trustee or by employees (or former employees) as part of an exempt ESS. You can ignore these shares as long as they don’t add up to more than 3% of the voting rights or market value interests in the company.

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Next up: IC 5: Company B using company A’s tax loss

or “Requirements for one company to use another company's tax loss”
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Part I Treatment of tax losses
Grouping tax losses

IC 4Common ownership: wholly-owned groups of companies

  1. A wholly-owned group of companies means 2 or more companies in relation to which a group of persons holds, for the relevant period,—

  2. common voting interests that add up to 100%; and
    1. if a market value circumstance exists for a company that is part of a group of companies, common market value interests that add up to 100%.

      1. In subsection (1), company shares held by the trustee of, or by employees or former employees of the company as a consequence of the operation of, an exempt ESS are disregarded to the extent to which they represent voting interests in the company that add up to no more than 3%, or, as applicable, market value interests in the company that add up to no more than 3%.

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      Notes
      • Section IC 4(2) heading: replaced (with effect on 29 March 2018), on , by section 84(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section IC 4(2): amended (with effect on 29 March 2018), on , by section 84(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section IC 4 list of defined terms exempt ESS: inserted (with effect on 29 March 2018), on , by section 84(3)(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section IC 4 list of defined terms share purchase scheme: repealed (with effect on 29 March 2018), on , by section 84(3)(b) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).