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Designated Private Company
What is a designated private company?
- the company satisfies at least two of the following three sub-conditions in relation to the financial year ending immediately before the assessment period:
- the consolidated gross operating revenue for the financial year for the company and its subsidiaries is less than $25 million,
- the value of the consolidated gross assets at the end of the financial year of the company and its subsidiaries is less then $12.5 million,
- the company and its subsidiaries have fewer than 50 employees at the end of the financial year; or
- the company is a new company and came into existence after the end of the last financial year, or
- the company is a declared private company, and
- the company is not an excluded company.
Once it has been determined that the company is a designated private company, then the issue of who controls the assets and income of the company and the percentage of control to be attributed to the individual(s) can be decided.
Non-designated private companies
Non-designated private companies are assessed under the pre 1 January 2002 private company rules.
Assessing the Income & Assets from Private Companies pre 01/01/2002
Legislation Library - Commission Determinations
Company has the same meaning as in the Income Tax Assessment Act 1997.
According to Section 52ZZA of the VEA, a company is a designated private company at a particular time if the company:
- satisfies at least 2 of the following conditions in relation to the financial year that ended immediately before that time:
gross operating revenue is less than $25 million;
gross assets at the end of the financial year are less than $12.5 million;
the company has fewer than 50 employees at the end of the financial year, or
- the company came into existence after the end of the financial year that ended immediately preceding that time, or
- the company is a declared private company (DPC) ,
and the company is not an excluded company.
Financial year, in relation to a company, means:
- a period of 12 months beginning on 1 July, or
- if some other period is the company's tax year that other period.
An excluded company is a company declared in writing by Commission to be excluded from the private trust and company provisions.
Control includes control as a result of, or by means of, trusts, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights.