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Non-ADI general outward investor

The 5 steps a non-ADI general outward investor takes to calculate if they have met the thin capitalisation rules.

Last updated 8 March 2016

The steps a non-ADI general outward investor takes to calculate if they have met the thin capitalisation rules are:

Summary flowchart

This flowchart summarises the steps a non-ADI general outward investor 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 2: Non-ADI general outward investor's steps to work out if any of the debt deductions are disallowed

Flowchart_02-Non-ADI-general-outward-investor_js36486

Step 1: Calculate the adjusted average debt

To check if you meet the requirements under the thin capitalisation rules if you're a non-ADI general outward investor.

Step 2: Calculate the safe harbour debt amount

To check if you meet the requirements under the thin capitalisation rules if you're a non-ADI general outward investor.

Step 2A: Calculate the average associate entity excess amount for the safe harbour debt amount

To check if you meet the requirements under the thin capitalisation rules if you're a non-ADI general outward investor.

Step 3: Calculate the worldwide gearing debt amount

To check if you meet the requirements under the thin capitalisation rules if you're a non-ADI general outward investor.

Step 4: Calculate the arm's length debt amount

To check if you meet the requirements under thin capitalisation rules if you are a non-ADI general outward investor.

Step 5: Calculate debt deductions disallowed

To check if you meet the requirements under the thin capitalisation rules if you're a non-ADI general outward investor.

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