CW 55BATertiary education institutions and subsidiaries

1. An amount of income derived by a tertiary education institution or a tertiary education subsidiary is exempt income.

2. In this section, a tertiary education subsidiary, for a tertiary education institution, means a company—

3. in which the tertiary education institution, alone or together with other tertiary education institutions, holds—
   1. voting interests in the company adding up to 100%; or
   2. market value interests in the company adding up to 100%, when a market value circumstance exists; and
4. where no person, other than a tertiary education institution, with some control over the company is able to direct or divert, to their own benefit or advantage, an amount derived from the company.

5. For the purposes of subsection (2)(b), for an income year, a person is treated as having some control over the company and as being able to direct or divert amounts from the company if, in the corresponding tax year, they are described in section CW 42(5)(a) and (b).

6. For the purposes of subsection (2)(b), a person described in section CW 42(7)(a) and (b) is not treated as having some control over the company merely because of the factors in section CW 42(7)(a) and (b).

7. For the purposes of subsection (2)(b), a benefit or advantage is one that would be a benefit or advantage under section CW 42(1)(c) and (8).

Notes

• Section CW 55BA: replaced (with effect on 1 July 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 86(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).