Income Tax Act 2007 section 257MT

Excluded activity: providing services or facilities for another business

Section 257MT defines what a "controlling interest" in a business means for the purposes of the social investment tax relief rules on excluded activities, and explains when providing services or facilities to another business is treated as an excluded activity.

• A person has a controlling interest in a company if they control it, or if the company is close and the person (or an associate) is a director holding or controlling more than 30% of ordinary share capital, or if at least half the business can be regarded as belonging to them
• For non-corporate businesses, a person has a controlling interest if they are entitled to at least half of the business assets or income
• The rights and powers of a person's associates are attributed to that person when determining whether a controlling interest exists
• Providing services or facilities to another business is an excluded activity where that other business substantially carries on excluded activities and the same person holds a controlling interest in both businesses