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  • Question 37

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    This question requires information if you were not an authorised deposit taking institution (ADI).

    If you have written code 7 or 8 (ADI) at A item 32, answer No at A.

    If you were not an ADI for the income year and have written code 1, 2, 3, 4, 5, 6, 9 or 10 (non-ADI) at A item 32, answer Yes at A and complete the following.

    At B, write the amount of the average value of your assets included in step 1 of the following sections if you have written:

    • code 1 or 9 at A item 32, under section 820-95
    • code 2 or 10 at A item 32, under section 820-100
    • code 3 at A item 32, under section 820-195
    • code 4 at A item 32, under section 820-200
    • code 5 at A item 32, under section 820-205
    • code 6 at A item 32, under section 820-210.

    At C, write the total amount by which your assets have been revalued for thin capitalisation purposes for the income year (this must be included in the amount you write at B item 37).

    At D, if you have written:

    • code 1, 2, 9 or 10 at A item 32, write your safe harbour debt amount determined under section 820-95 (code 1 or 9) or section 820-100 (code 2 or 10). If you have calculated a safe harbour debt amount and relied on the arm’s length method or world-wide gearing method, write the amount you calculated for the safe harbour debt amount at D, otherwise leave this blank.
    • code 3, 4, 5, or 6 at A item 32, write your safe harbour debt amount determined under section 820-195 (code 3), section 820-200 (code 4), section 820-205 (code 5), or section 820-210 (code 6). If you have calculated a safe harbour debt amount and relied on the arm’s length method or world-wide gearing method write the amount you calculated for the safe harbour debt amount at D, otherwise leave this blank.

    At E, write the amount by which your adjusted average debt written at D item 35 exceeds your maximum allowable debt determined under section 820-90 (codes 1, 2, 9 and 10) or section 820-190 (codes 3, 4, 5 and 6).

    At F, write the amount of the average value of your non-debt liabilities, as defined in subsection 995-1(1), which you must subtract in determining your safe harbour debt amount as follows if you have written:

    • code 1 or 9 at A item 32, subtracted in step 6 of section 820-95
    • code 2 or 10 at A item 32, subtracted in step 6 of subsection 820-100(2)
    • code 3 at A item 32, subtracted in step 4 of section 820-195
    • code 4 at A item 32, subtracted in step 4 of subsection 820-200(2)
    • code 5 at A item 32, subtracted in step 4 of section 820-205
    • code 6 at A item 32, subtracted in step 4 of subsection 820-210(2).

    At G, write the amount of the average value of your associate entity debt, within the meaning of section 820-910, which you must subtract in working out your safe harbour debt amount as follows if you have written:

    • code 1 or 9 at A item 32, subtracted in step 2 of section 820-95
    • code 2 or 10 at A item 32, subtracted in step 2 of subsection 820-100(2)
    • code 3 at A item 32, subtracted in step 2 of section 820-195
    • code 4 at A item 32, subtracted in step 2 of subsection 820-200(2)
    • code 5 at A item 32, subtracted in step 2 of section 820-205
    • code 6 at A item 32, subtracted in step 2 of subsection 820-210(2).

    At H, write the amount of the average value of your associate entity equity, within the meaning of section 820-915, which you must subtract in working out your safe harbour debt amount as follows if you have written:

    • code 1 or 9 at A item 32, subtracted in step 3 of section 820-95
    • code 2 or 10 at A item 32, subtracted in step 3 of subsection 820-100(2)
    • code 3 at A item 32, subtracted in step 3 of section 820-195
    • code 4 at A item 32, subtracted in step 3 of subsection 820-200(2)
    • code 5 at A item 32, subtracted in step 3 of section 820-205
    • code 6 at A item 32, subtracted in step 3 of subsection 820-210(2).

    At I, write the amount of the average value of your associate entity excess amount, within the meaning of section 820-920, which you must add in working out your safe harbour debt amount as follows if you have written:

    • code 1 or 9 at A item 32, added in step 8 of section 820-95
    • code 2 or 10 at A item 32, added in step 10 of subsection 820-100(2)
    • code 3 at A item 32, added in step 6 of section 820-195
    • code 4 at A item 32, added in step 8 of subsection 820-200(2)
    • code 5 at A item 32, added in step 6 of section 820-205
    • code 6 at A item 32, added in step 8 of subsection 820-210(2).

    At J, write the amount of the average value of your excluded equity interests, within the meaning of section 820-946, which you must subtract in working out your safe harbour debt amount as follows if you have written:

    • code 1 or 9 at A item 32, subtracted in step 1A of section 820-95
    • code 2 or 10 at A item 32, subtracted in step 1A of subsection 820-100(2)
    • code 3 at A item 32, subtracted in step 1A of section 820-195
    • code 4 at A item 32, subtracted in step 1A of subsection 820-200(2)
    • code 5 at A item 32, subtracted in step 1A of section 820-205
    • code 6 at A item 32, subtracted in step 1A of subsection 820-210(2).

    If you have written code 2, 4, 6 or 10 (financial) at A item 32, then at K write the average value of your zero capital amount, within the meaning of section 820-942, which you must subtract in working out your safe harbour debt amount as follows if you have written:

    • code 2 or 10 at A item 32, subtracted in step 7 of subsection 820-100(2)
    • code 4 at A item 32, subtracted in step 5 of subsection 820-200(2)
    • code 6 at A item 32, subtracted in step 5 of subsection 820-210(2).

    If you have written code 2, 4, 6 or 10 (financial) at A item 32, then at L write the average value of your on-lent amount, as defined in subsection 995-1(1), which you must subtract in working out your safe harbour debt amount as follows if you have written:

    • code 2 or 10 at A item 32, subtracted in step 6 of subsection 820-100(3)
    • code 4 at A item 32, subtracted in step 4 of subsection 820-200(3)
    • code 6 at A item 32, subtracted in step 4 of subsection 820-210(3).

    If you have written code 1, 2, 9 or 10 at A item 32, then at M write the average value of all your controlled foreign entity equity, within the meaning of section 820-890, which you must subtract in working out your safe harbour debt amount as follows if you have written:

    • code 1 or 9 at A item 32, subtracted in step 5 of subsection 820-95
    • code 2 or 10 at A item 32, subtracted in step 5 of subsection 820-100(2).

    If you have written code 1, 2, 9 or 10 at A item 32, then at N write the average value of all your controlled foreign entity debt, within the meaning of section 820-885, which you must subtract in working out your safe harbour debt amount as follows if you have written:

    • code 1 or 9 at A item 32, subtracted in step 4 of subsection 820-95
    • code 2 or 10 at A item 32, subtracted in step 4 of subsection 820-100(2).

    Question 37a

    If you have chosen to recognise an internally generated intangible item, other than internally generated goodwill, for thin capitalisation purposes under section 820-683 of the ITAA 1997, answer Yes at A item 37a and read on. Otherwise, go to question 37c.

    Question 37b

    At B item 37b, write the total amount you have determined as the average amount for the internally generated intangible assets you have chosen to recognise under section 820-683 of the ITAA 1997, determined as a result of applying your selected method for calculating average values.

    Question 37c

    If you have chosen to revalue an intangible asset under section 820-684 of the ITAA 1997 that is prevented from being revalued under AASB 138 due to the absence of an active market, answer Yes at A item 37c and read on. Otherwise, go to question 38.

    At B item 37c, write the average revaluation amount of the intangible item you have chosen to revalue under section 820-684 of the ITAA 1997.

    If you are revaluing more than one asset under section 820-684 of the ITAA 1997, write the total average revaluation amount of the assets you have chosen to revalue.

    Last modified: 06 Nov 2018QC 55230