Guide E: Guide to thin capitalisation calculations for ADI entities

Do you need to read this guide?

Read this guide if you have to work out the thin capitalisation consequences for an entity that is an authorised deposit-taking institution (ADI) outward investing entity or an ADI inward investing entity where any of the following applies:

• together with its associate entities, the entity has debt deductions of more than $250,000 in the income year
• as an outward investing ADI that is not also foreign controlled, it does not meet the asset threshold test outlined in section 1 of Guide A: Guide to thin capitalisation under the heading 'Entities that are not affected by the rules'
• it is not a special purpose entity set up to manage certain risks. This exemption is explained in section 1 of Guide A: Guide to thin capitalisation under the heading 'Entities that are not affected by the rules'.