The five steps a non-ADI general inward investment vehicle takes to calculate if they have met the thin capitalisation rules are:
- Step 1: Calculate the adjusted average debt
- Step 2: Calculate the safe harbour debt amount
- Step 3: Calculate the arm's length debt amount
- Step 4: Calculate the worldwide gearing debt amount
- Step 5: Calculate debt deductions disallowed.
Summary flowchart
This flowchart summarises the steps a non-ADI general inward investment vehicle follows to work out whether any of its debt deductions are disallowed and, if so, the amount of the disallowed deductions. Use this flowchart to help you work through the steps.
Flowchart 4: Non-ADI general inward investment vehicle's steps to work out if any of the debt deductions are disallowed