My Australian company holds 60% interest in a foreign company FC1 which holds 40% interest in another foreign company FC2. FC2 holds 60% interest in a foreign company FC3. What is the indirect control interest of my Australian company in FC3?
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Answer by Anton Joseph, Strathfield South 2136 NSW
- Indirect control interest of the Australian company = 100% x 40% x 100% = 40%.
- Since the control interest is 60% the control tracing interests will be taken as 100% in CF1.
- Similarly FC2 holds 60% interest in CF3 it will be taken to have 100% in FC3.