Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-H - Control of entities  

Thin capitalisation control interest

SECTION 820-825   Special rules about calculating TC control interests held by a group of entities  

820-825(1)  
This section applies for the purposes of calculating the total *TC control interests that a group of entities holds in a company, trust or partnership.

820-825(2)  


Take into account a particular *TC direct control interest or *TC indirect control interest only once if it would otherwise be counted more than once because the entity holding it is an *associate entity of one or more entities in the group.

820-825(2A)  


Subsection (2) does not apply to an *associate entity of one or more entities in the group if:


(a) the associate entity is a *foreign entity and the associate entity is such an associate entity only because of subsection 820-905(3A) ; or


(b) the associate entity is such an associate entity only because of subsection 820-905(3B) .

820-825(3)  
Take into account only one of the following things if both of them would otherwise be counted in calculating the total *TC control interests:


(a) the holding of a *TC direct control interest by an entity;


(b) an entitlement to acquire that TC direct control interest.

820-825(4)  
The operation of this section in relation to a group of entities does not prevent the operation of section 820-820 in relation to an entity that is a member of that group.


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