Income Tax Assessment Act 1997
SECTION 820-609 Effect on classification of head company or single company 820-609(1)
The *head company or single company is an outward investing entity (ADI) for a period (the trial period ) that is all or part of the grouping period if: (a) apart from this Subdivision, the head company or single company would be an *outward investing entity (ADI) for the trial period; or (b) apart from this Subdivision, the head company or single company would be:
(i) an *outward investing entity (non-ADI) and an *outward investor (financial) for the trial period; or
and at least one of the *Australian permanent establishments is a *permanent establishment through which a *foreign bank carries on banking *business in Australia.
(ii) an *outward investing entity (non-ADI) and an *outward investor (general) for the trial period;
[ CCH Note: S 820-609(1) will amended by No 23 of 2024, s 3 and Sch 2 item 89, by substituting para (b), effective 1 July 2024. For application provisions, see note under s 705-60 . Para (b) will read:
]
(b) apart from this Subdivision, the head company or single company:
(i) would be an * outward investing financial entity (non-ADI) for the trial period; and
(ii) at least one of the * Australian permanent establishments is a * permanent establishment through which a * foreign bank carries on banking * business in Australia.
820-609(2)
The *head company is also an outward investing entity (ADI) for the trial period if, apart from this Subdivision: (a) section 820-585 would prevent the disallowance of a *debt deduction for the income year including the trial period; or (b) section 820-587 would apply Subdivision 820-D to the head company as if it were an *outward investing entity (ADI) for the trial period.
820-609(3)
The single company is also an outward investing entity (ADI) for the trial period if it is both a *foreign controlled Australian company and an *ADI for that period.
820-609(4)
The *head company or single company is an inward investing entity (ADI) for the trial period if: (a) apart from this Subdivision, it would be an *inward investment vehicle (general) or an *inward investment vehicle (financial), and not an *outward investor (general) or an *outward investor (financial), for the trial period; and (b) at least one of the *Australian permanent establishments is a *permanent establishment through which a *foreign bank carries on banking *business in Australia.
[ CCH Note: S 820-609(4) will be amended by No 23 of 2024, s 3 and Sch 2 item 90, by substituting " *inward investment vehicle (financial), and not an *outward investing financial entity (non-ADI), " for " *inward investment vehicle (general) or an *inward investment vehicle (financial), and not an *outward investor (general) or an *outward investor (financial), " in para (a), effective 1 July 2024. For application provisions, see note under s 705-60 .]
820-609(5)
The *head company or single company is an outward investing entity (non-ADI) and an outward investor (financial) for the trial period if, apart from this Subdivision, it would be an *outward investing entity (non-ADI) and: (a) an *outward investor (financial); or (b) an *outward investor (general);
for that period, and:
(c) at least one of the *Australian permanent establishments is a *permanent establishment of a *foreign entity that is a *financial entity; and (d) none of the Australian permanent establishments is a permanent establishment through which a *foreign bank carries on banking *business in Australia.[ CCH Note: S 820-609(5) will be substituted by No 23 of 2024, s 3 and Sch 2 item 91, effective 1 July 2024. For application provisions, see note under s 705-60 . S 820-609(5) will read:
]
820-609(5)
The * head company or single company is an outward investing financial entity (non-ADI) for the trial period if, apart from this Subdivision:
(a) it would be an * outward investing financial entity (non-ADI) for that period; and
(b) at least one of the * Australian permanent establishments is a * permanent establishment of a * foreign entity that is a * financial entity; and
(c) none of the Australian permanent establishments is a permanent establishment through which a * foreign bank carries on banking * business in Australia.
820-609(6)
The *head company or single company is an inward investing entity (non-ADI) and an inward investment vehicle (financial) for the trial period if, apart from this Subdivision, it would be an *inward investing entity (non-ADI) and: (a) an *inward investment vehicle (financial); or (b) an *inward investment vehicle (general);
for that period and not an *outward investor (general) or an *outward investor (financial) for that period and:
(c) at least one of the *Australian permanent establishments is a *permanent establishment of a *foreign entity that is a *financial entity; and (d) none of the Australian permanent establishments is a permanent establishment through which a *foreign bank carries on banking *business in Australia.[ CCH Note: S 820-609(6) will be substituted by No 23 of 2024, s 3 and Sch 2 item 91, effective 1 July 2024. For application provisions, see note under s 705-60 . S 820-609(6) will read:
]
820-609(6)
The * head company or single company is an inward investing financial entity (non-ADI) and an inward investment vehicle (financial) for the trial period if, apart from this Subdivision:
(a) it would be an * inward investing financial entity (non-ADI) and an * inward investment vehicle (financial) for that period; and
(b) it would not be an * outward investing financial entity (non-ADI) for that period; and
(c) at least one of the * Australian permanent establishments is a * permanent establishment of a * foreign entity that is a * financial entity; and
(d) none of the Australian permanent establishments is a permanent establishment through which a * foreign bank carries on banking * business in Australia.
820-609(7)
This section has effect despite any other provision of this Division, except Subdivision 820-EA and section 820-610 .
Note:
If the head company or single company is an outward investor (financial) or inward investment vehicle (financial) under this section and satisfies subsection 820-430(5) , it may choose under Subdivision 820-EA to be treated as an outward investing entity (ADI). Section 820-603 affects whether the company satisfies that subsection, by treating as part of the company each relevant foreign financial entity's Australian permanent establishment.
[ CCH Note: S 820-609(7) will be amended by No 23 of 2024, s 3 and Sch 2 item 92, by substituting " investing financial entity (non-ADI) " for " investor (financial) " in the note, effective 1 July 2024. For application provisions, see note under s 705-60 .]
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