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.