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Question 38

Last updated 15 February 2022

If you relied on an arm's length debt or capital amount calculated under Division 820 of the ITAA 1997, answer Yes at A and read on. Otherwise, go to question 39.

Write at B the arm's length debt amount or the arm's length capital amount determined under the following section.

Arm's length debt or capital amount provision

Code you wrote at A item 32

Section

1, 2, 9 or 10

820-105

3, 4, 5 or 6

820-215

7

820-315

8

820-410

Question 39

This question requires information if you have relied on the worldwide gearing debt and capital amount.

You must answer Yes at A item 39 and complete all the applicable labels if you have written:

  • code 1 or 2 (outward investor (non-ADI)) at A item 32 and you rely on the worldwide gearing debt amount as calculated in subsection 820-110(1) or subsection 820-110(2)
  • code 3, 4, 5 or 6 (inward investing entities (non-ADI)) at A item 32 and you rely on the worldwide gearing debt amount as calculated in section 820-216, section 820-217, section 820-218 or section 820-219
  • code 7 (outward investing entity (ADI)) at A item 32 and you rely on the worldwide capital amount as calculated in section 820-320
  • code 9 or 10 (inward investment vehicle and is also outward investor (non-ADI)) at A item 32 and you rely on the worldwide gearing debt amount as calculated in subsection 820-111(1) or subsection 820-111(2).

If you have written code 8 at A item 32, you do not need to complete this question.

If you have relied on worldwide gearing debt and capital tests, answer Yes at A item 39 and complete the relevant labels.

If you have written code 7 (outward investing entity (ADI)) at A item 32 write:

  • At B, the worldwide group capital ratio worked out in accordance with subsection 820-320(3). For example, if the amount worked out under step 1 of the method statement in subsection 820-320(3) is 5.42% of the amount worked out under step 2, the fractional whole number you must write at B is 0.05420.
  • At C, your worldwide capital amount worked out under subsection 820-320(2).

If you have written code 1 or 2 (outward investor (non-ADI)) at A item 32 write:

  • At D, the amount of your worldwide debt, as defined in subsection 995-1(1), used to calculate the result of step 1 in the following subsections if you have written  
    • code 1 at A item 32, step 1 in subsection 820-110(1)
    • code 2 at A item 32, step 1 in subsection 820-110(2).
     
  • At E, the amount of your worldwide equity, as defined in subsection 995-1(1), used to calculate the result of step 1 in the following subsections if you have written  
    • code 1 at A item 32, step 1 in subsection 820-110(1)
    • code 2 at A item 32, step 1 in subsection 820-110(2).
     
  • At F, your worldwide gearing debt amount worked out under the following subsections if you have written  
    • code 1 at A item 32, under subsection 820-110(1)
    • code 2 at A item 32, under subsection 820-110(2).
     

If you have written code 3, 4, 5 or 6 (inward investing entity (non-ADI)), or code 9 or 10 (inward investment vehicle which is also an outward investor (non-ADI)) at A item 32 write:

  • At D, the amount of your statement worldwide debt, as defined in subsection 995-1(1), used to calculate the result of step 1 in the following sections if you have written  
    • code 3 at A item 32, step 1 in section 820-216
    • code 4 at A item 32, step 1 in section 820-217
    • code 5 at A item 32, step 1 in section 820-218
    • code 6 at A item 32, step 1 in section 820-219
    • code 9 at A item 32, step 1 in subsection 820-111(1)
    • code 10 at A item 32, step 1 in subsection 820-111(2).
     
  • At E, the amount of your statement worldwide equity, as defined in subsection 995-1(1), used to calculate the result of step 1 in the following sections if you have written  
    • code 3 at A item 32, step 1 in section 820-216
    • code 4 at A item 32, step 1 in section 820-217
    • code 5 at A item 32, step 1 in section 820-218
    • code 6 at A item 32, step 1 in section 820-219
    • code 9 at A item 32, step 1 in subsection 820-111(1)
    • code 10 at A item 32, step 1 in subsection 820-111(2).
     
  • At F, your worldwide gearing debt amount worked out under the following sections if you have written  
    • code 3 at A item 32, under section 820-216
    • code 4 at A item 32, under section 820-217
    • code 5 at A item 32, under section 820-218
    • code 6 at A item 32, under section 820-219
    • code 9 at A item 32, under subsection 820-111(1)
    • code 10 at A item 32, under subsection 820-111(2).
     
  • At G, the amount of your statement worldwide assets, as defined in subsection 995-1(1), for the purpose of applying subsection 820-90(3) if you have written  
    • code 3 at A item 32, and have applied section 820-216
    • code 4 at A item 32, and have applied section 820-217
    • code 5 at A item 32, and have applied section 820-218
    • code 6 at A item 32, and have applied section 820-219
    • code 9 at A item 32, and have applied subsection 820-111(1)
    • code 10 at A item 32, and have applied subsection 820-111(2).
     
  • At H, the amount of your average Australian assets, as defined in subsection 995-1(1), for the purpose of applying subsection 820-90(3) if you have written  
    • code 3 at A item 32, and have applied section 820-216
    • code 4 at A item 32, and have applied section 820-217
    • code 5 at A item 32, and have applied section 820-218
    • code 6 at A item 32, and have applied section 820-219
    • code 9 at A item 32, and have applied subsection 820-111(1)
    • code 10 at A item 32, and have applied subsection 820-111(2).
     

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