Income Tax Assessment Act 1997
View history note
Hide history noteThe Object of this Division is to ensure that the following entities do not reduce their tax liabilities by using an excessive amount of *debt capital to finance their Australian operations: (a) *Australian entities that operate internationally; (b) Australian entities that are foreign controlled; (c) *foreign entities that operate in Australia.
Note:
This Division applies in relation to debt deductions of an entity as reduced, if required, in accordance with Division 815 (about cross-border transfer pricing).
[ CCH Note: S 820-30 will be amended by No 23 of 2024, s 3 and Sch 2 item 15, by substituting " *debt deductions, in financing their Australian operations " for " *debt capital to finance their Australian operations " , effective 1 July 2024. For application provisions, see note under s 705-60 .]
[
CCH Note:
S 820-31 will be inserted by No 23 of 2024, s 3 and Sch 2 item 15A, effective 1 July 2024. For application provisions, see note under s
705-60
. S 820-31 will read:
The provisions mentioned in paragraphs
(2)(a)
to
(c)
may further disallow debt deductions of the entity.
SECTION 820-31 Order of application of Subdivisions
820-31(1)
First, work out if a *debt deduction of an entity for an income year is disallowed under Subdivision
820-EAA
(debt deduction limitation rules for debt deduction creation).
820-31(2)
To the extent that all or part of a debt deduction is disallowed under that Subdivision, disregard the debt deduction in applying the following provisions in relation to the entity for the income year:
(a)
Subdivision
820-AA
;
(b)
Subdivision
820-B
;
(c)
Subdivision
820-C
.
Note:
]
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