Lendlease Annual Report 2024

174 Lendlease Annual Report 2024 Consolidated Entity Disclosure Statement continued Key Assumptions and Judgements Determination of Tax Residency Section 295(3A) of the Corporations Act 2001 requires that the tax residency of each entity which is included in the Consolidated Entity Disclosure Statement (CEDS) be disclosed. In determining tax residency, the consolidated entity has applied the following interpretations: • Australian tax residency “Australian resident” has the meaning provided in the Income Tax Assessment Act 1997. The consolidated entity has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5 and Practical Compliance Guideline PCG 2018/19. • Foreign tax residency The consolidated entity has applied current legislation, double tax agreements and where available judicial precedent in the determination of foreign tax residency. Partnerships and Trusts Australian tax law does not contain specific residency tests for partnerships and trusts. Generally, these entities are taxed on a flow- through basis, meaning the partners and unitholders have the obligation to pay tax in relation to their involvement in the partnership or trust, so there is no need for a general residence test. Other jurisdictions such as the UK, Jersey and Singapore adopt similar positions. For this reason, the tax residence of partnerships (including UK limited liability partnerships (LLPs) disclosed as body corporates) has been disclosed as “N/A” and the tax residence of trusts has been disclosed as the same tax residence of the relevant trust’s trustee. United States Limited Liability Companies (LLCs) All of the consolidated entity’s LLCs are disregarded for United States income tax purposes, meaning that the ultimate single member, being in every case either Lendlease Americas Inc. or Lendlease Americas Holdings Inc, has the obligation to pay tax in relation to their direct or indirect interest in the LLCs. The tax residencies disclosed for LLCs has been determined by reference to the tax residency of each LLC’s ultimate single member.