Introduction Details of the Schedule New Section 312G
104.One of the conditions of section 312B(1) for the exemption to apply is that the company must not be a service company.  New subsection (1) provides definitions of a ‘service company’ as either being a managed service company within section 61B or a company which meets Conditions A and B.
105.Conditions A and B are provided for in new subsections (2) and (3) respectively.  The company will be a service company if most of the business carried on by the company is the provision of the services of its employees and it meets the definition of a person (or persons) described in subsection (4) who is not a member of the same group as the company paying the bonus.
106.New subsection (4) specifies that the persons or companies referred to in subsection (3) are those who have previously had control over the company, have employed all or most of the employees of the company or the company’s group in the past, or a subsidiary of a company which has done so previously.
107.New subsection (5) provides that subsection (4) should be applied in a similar way in relation to partnerships.
108.New subsection (6) lists the three legislative provisions that apply for the purposes of interpreting specified terms used within this section.