Guide B: Guide to thin capitalisation calculations for non-ADI outward investors

Do you need to read this guide?

Read this guide if you have to work out the thin capitalisation consequences for a non-ADI outward investing entity (whether general or financial) where any of the following apply:

• together with its associate entities, the non-ADI outward investing entity has debt deductions of more than $250,000 in the income year
• if the entity is not foreign controlled and 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'
• the entity is not a special purpose entity set up to manage certain risks and is exempt from the thin capitalisation provisions under section 820-39. This exemption is explained in more detail in section 1 of Guide A: Guide to thin capitalisation under the heading 'Entities that are not affected by the rules'.