Income Tax Act 2007 section 188

The property managing subsidiaries requirement

Section 188 requires that any property managing subsidiary of the issuing company must be a qualifying 90% subsidiary during period B, and defines what counts as a property managing subsidiary.

• Any property managing subsidiary held by the issuing company at any time during period B must be a qualifying 90% subsidiary of that company
• A property managing subsidiary is one whose business consists wholly or mainly of holding or managing land, or property deriving its value from land
• Property deriving its value from land includes shareholdings, partnership interests, interests in settled property, and options, consents or embargoes affecting the disposition of land
• The connection to land may be direct or indirect for shareholdings, partnership interests and interests in settled property