Income Tax Assessment Act 1997
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Hide history noteSECTION 820-53 Meaning of group ratio, GR group, GR group parent and GR group member 820-53(1)
If an entity is a * GR group member for a period of a * GR group for the period, the entity ' s group ratio for the income year corresponding to the period is worked out as follows: (a) first, work out the * GR group net third party interest expense, for that period, of the GR group; (b) next, work out the * GR group EBITDA for that period of the GR group; (c) next, divide the result of paragraph (a) by the result of paragraph (b) .
If the result of paragraph (b) is zero, the entity ' s group ratio for the income year is zero.
Note:
The entity must keep records in accordance with section 820-985 if the entity works out a group ratio under this section.
820-53(2)
A GR group , for a period, is: (a) if * audited consolidated financial statements for the period have been prepared for a worldwide parent entity (as described in subsection 820-935(6) ) - the group comprised of all of the following:
(i) the worldwide parent entity;
(b) if paragraph (a) does not apply, and * global financial statements have been prepared for the period for a * global parent entity - the group comprised of all of the following:
(ii) each other entity that is fully consolidated on a line-by-line basis in those audited consolidated financial statements; or
(i) the global parent entity;
(ii) each other entity that is fully consolidated on a line-by-line basis in those global financial statements.
820-53(3)
If paragraph (2)(a) applies: (a) the GR group parent for the period of the * GR group is the worldwide parent entity mentioned in that paragraph; and (b) each of the entities mentioned in that paragraph is a GR group member for the period of the * GR group.
820-53(4)
If paragraph (2)(b) applies: (a) the GR group parent for the period of the * GR group is the * global parent entity mentioned in that paragraph; and (b) each of the entities mentioned in that paragraph is a GR group member for the period of the * GR group.
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