INCOME TAX ASSESSMENT ACT 1997 [ARCHIVE]

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-F - Thin capitalisation rules for resident TC groups  

How this Division applies to a resident TC group

SECTION 820-550 [ARCHIVE]   Classification of the resident TC group   Outward investing entity (non-ADI)

820-550(1)  
A *resident TC group for an income year is an outward investing entity (non-ADI) for the income year if, and only if, it is:


(a) an *outward investor (general) for the income year (because of subsection (2)); or


(b) an *outward investor (financial) for the income year (because of subsection (3) or (4)). Outward investor (general)

820-550(2)  
A *resident TC group for an income year is an outward investor (general) for the income year if:


(a) the group includes at least one entity that, apart from this Subdivision, would be an *outward investor (general) for a period ending at the end of the income year; and


(b) the group includes no entity that is a *financial entity or *ADI at the end of the income year. Outward investor (financial)

820-550(3)  
A *resident TC group for an income year is an outward investor (financial) for the income year if:


(a) the group includes at least one entity that, apart from this Subdivision, would be an *outward investor (financial) for a period ending at the end of the income year; and


(b) the group includes no entity that is an *ADI at the end of the income year.

820-550(4)  
A *resident TC group for an income year is also an outward investor (financial) for the income year if:


(a) the group includes at least one entity that, apart from this Subdivision, would be an *outward investor (general) for a period ending at the end of the income year; and


(b) the group includes at least one entity that is a *financial entity at the end of the income year; and


(c) the group includes no entity that is an *ADI at the end of the income year. Inward investing entity (non-ADI)

820-550(5)  
A *resident TC group for an income year is an inward investing entity (non-ADI) for the income year if, and only if, it is:


(a) an *inward investment vehicle (general) for the income year (because of subsection (6)); or


(b) an *inward investment vehicle (financial) for the income year (because of subsection (7)). Inward investment vehicle (general)

820-550(6)  
A *resident TC group for an income year is an inward investment vehicle (general) for the income year if:


(a) the group includes at least one entity that, apart from this Subdivision, would be an *inward investment vehicle (general) for a period ending at the end of the income year; and


(b) the group includes no entity that, apart from this Subdivision, would be an *outward investing entity (non-ADI) for a period ending at the end of the income year; and


(c) the group includes no entity that is a *financial entity or *ADI at the end of the income year. Inward investment vehicle (financial)

820-550(7)  
A *resident TC group for an income year is an inward investment vehicle (financial) for the income year if:


(a) the group includes at least one entity that, apart from this Subdivision, would be an *inward investment vehicle (financial) for a period ending at the end of the income year; and


(b) the group includes no entity that, apart from this Subdivision, would be an *outward investing entity (non-ADI) for a period ending at the end of the income year; and


(c) the group includes no entity that is an *ADI at the end of the income year. Outward investing entity (ADI)

820-550(8)  
A *resident TC group for an income year is an outward investing entity (ADI) for the income year if, and only if:


(a) the group includes at least one entity that, apart from this Subdivision, would be an *outward investing entity (ADI) for a period ending at the end of the income year; or


(b) the group includes:


(i) at least one entity that, apart from this Subdivision, would be an *outward investing entity (non-ADI) for a period ending at the end of the income year; and

(ii) at least one entity that is an *ADI at the end of the income year.



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