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 820-583   Classification of head company  

Outward investing entity (non-ADI)

820-583(1)    
The *head company of a *consolidated group or of a *MEC group is an outward investing entity (non-ADI) for a period that is all or part of an income year if, and only if, it is:

(a) an *outward investor (general) for that period (because of subsection (2)); or

(b) an *outward investor (financial) for that period (because of subsection (3)). Outward investor (general)

820-583(2)    
The *head company of a *consolidated group or of a *MEC group is an outward investor (general) for a period that is all or part of an income year if:

(a) for that period, the head company satisfies the condition in the second column of item 1 or 3 of the table in subsection 820-85(2) ; and

(b) no *member of the group is a *financial entity or *ADI at any time during that period. Outward investor (financial)

820-583(3)    
The *head company of a *consolidated group or of a *MEC group is an outward investor (financial) for a period that is all or part of an income year if:

(a) for that period, the head company satisfies the condition in the second column of item 1 or 3 of the table in subsection 820-85(2) ; and

(b) throughout that period, there is at least one *member of the group that is a *financial entity; and

(c) no *member of the group is an *ADI at any time during that period. Inward investing entity (non-ADI)

820-583(4)    
The *head company of a *consolidated group or of a *MEC group is an inward investing entity (non-ADI) for a period that is all or part of an income year if, and only if, it is:

(a) an *inward investment vehicle (general) for that period (because of subsection (5)); or

(b) an *inward investment vehicle (financial) for that period (because of subsection (6)). Inward investment vehicle (general)

820-583(5)    

The *head company of a *consolidated group or of a *MEC group is an inward investment vehicle (general) for a period that is all or part of an income year if:

(a) throughout that period, the head company is a *foreign controlled Australian entity; and

(b) no member of the group is a *financial entity or *ADI at any time during that period.

Inward investment vehicle (financial)

820-583(6)    

The *head company of a *consolidated group or of a *MEC group is an inward investment vehicle (financial) for a period that is all or part of an income year if:

(a) throughout that period, the head company is a *foreign controlled Australian entity; and

(b) throughout that period, there is at least one *member of the group that is a *financial entity; and

(c) no member of the group is an *ADI at any time during that period.

Outward investing entity (ADI)

820-583(7)    
The *head company of a *consolidated group or of a *MEC group is an outward investing entity (ADI) for a period that is all or part of an income year if, and only if:

(a) apart from Part 3-90 (about consolidation of groups) and this Subdivision, at least one *member of the group would be an *outward investing entity (ADI) for that period; or

(b) these conditions are met:

(i) at least one member of the group would, apart from that Part and this Subdivision, be an *outward investing entity (non-ADI) for that period; and

(ii) at least one member of the group is an *ADI throughout that period.