New International Tax Arrangements (Foreign-owned Branches and Other Measures) Act 2005 (64 of 2005)

Schedule 3   Australian permanent establishments of foreign financial entities

Part 3   Thin capitalisation

Income Tax Assessment Act 1997

19   Subsection 820-603(2)

Repeal the subsection, substitute:

(2) The rest of this section applies:

(a) to each *Australian permanent establishment that:

(i) was an Australian permanent establishment of the establishment entity; and

(ii) if the establishment entity was a *foreign bank - was an Australian permanent establishment through which the entity carried on banking *business in Australia at any time in the grouping period; and

(b) in relation to each time (the test time ) that was in the grouping period and was when the Australian permanent establishment:

(i) was an Australian permanent establishment of the establishment entity; and

(ii) if the establishment entity was a foreign bank - was an Australian permanent establishment through which the entity carried on banking business in Australia.