Income Tax Assessment Act 1997
This section has effect for the purposes of applying Subdivision 820-E to the *head company or single company in relation to a period (the test period ) that is all or part of the grouping period.
Subdivision 820-E applies to the head company or single company if it is classified as an inward investing entity (ADI) because of section 820-609 .
The average equity capital of the *head company or single company for the test period is:
(a) the average value, for that period, of all the *ADI equity capital of the company; plus
(b) the average value, for that period, of the amount worked out under subsection 820-613(3) .
In the case of a choice under section 820-599 , paragraph 820-603(4)(b) treats the single company and the relevant Australian permanent establishments as a consolidated group.
To calculate an average value for the purposes of this Division, see Subdivision 820-G .
The safe harbour capital amount of the *head company or single company for the test period is worked out using the following method statement. Method statement
Work out the average value, for the test period, of the *head company ' s or single company ' s *risk-weighted assets.
Multiply the result of step 1 by 6%. The result of this step is the safe harbour capital amount .
For each of the establishment entity ' s *Australian permanent establishments covered by the choice, the *risk-weighted assets of the *head company or single company include that part of the entity ' s risk-weighted assets that:
(a) is attributable to that Australian permanent establishment; and
(b) is not attributable to the entity ' s *OB activities.
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