Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-FA - How the thin capitalisation rules apply to consolidated groups and MEC groups  

Operative provisions

SECTION 820-587  

820-587   Additional application of Subdivision 820-D to MEC group that includes foreign-controlled Australian ADI  

Subdivision 820-D applies to the *head company of a *MEC group as if it were an *outward investing entity (ADI) for a period that is all or part of an income year if:

(a) the head company is not an outward investing entity (ADI) for that period; and

(b) throughout that period, at least one *member of the group is both a *foreign controlled Australian entity and an *ADI; and

(c) throughout that period, there is at least one *eligible tier-1 company of the *top company for the group that:

(i) is a member of the group; and

(ii) is not an ADI; and

(iii) has no *wholly-owned subsidiary that is an ADI.