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.

View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.