Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-FB - Grouping branches of foreign banks and foreign financial entities with a consolidated group, MEC group or single Australian resident company  

Effect of choice

SECTION 820-610   Choice not to be outward investing entity (ADI) or inward investing entity (ADI)  

820-610(1)    
This section applies if:

(a)    apart from this section, the * head company or single company would, under section 820-609 , be an * outward investing entity (ADI) or an * inward investing entity (ADI) for the trial period; and

(b)    at all times in the trial period, each of the following entities that is an * ADI is a * specialist credit card institution:

(i) the head company or single company;

(ii) an establishment entity whose * Australian permanent establishments the head company or single company has chosen under section 820-597 or 820-599 to have treated as part of the company for the period.

820-610(2)    

The * head company or single company is an outward investing financial entity (non-ADI) for the trial period if:

(a)    apart from this section, the company would, under section 820-609 , be an * outward investing entity (ADI) for the trial period; and

(b)    

the company chooses, before lodging its * income tax return for the income year including the trial period, to be an outward investing financial entity (non-ADI) for that period.

820-610(3)    

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:

(a)    apart from this section, the company would, under section 820-609 , be an * inward investing entity (ADI) for the trial period; and

(b)    

the company chooses, before lodging its * income tax return for the income year including the trial period, to be an inward investing financial entity (non-ADI) and an inward investment vehicle (financial) for that period.

820-610(4)    
This section has effect despite sections 820-85 , 820-185 and 820-609 .