Income Tax Assessment Act 1997
This Division does not disallow any of a *debt deduction for an income year if:
(a) the debt deduction is of the *head company of a *consolidated group and the head company satisfies subsection (2) for that income year; or
(b) the debt deduction is an amount incurred by the head company of a consolidated group during a period that is part of that income year, and the head company satisfies subsection (2) for that period. 820-585(2)
The *head company satisfies this subsection for a period that is all or part of an income year if, throughout that period:
(a) the head company is both a *foreign controlled Australian company and an *ADI (and would also be an ADI apart from Part 3-90 (about consolidation of groups)); or
(b) the head company:
(i) is a *foreign controlled Australian company; and
(ii) beneficially owns all the *membership interests in a *member of the group that is both a *foreign controlled Australian entity and an *ADI throughout that period; and
(iii) would, apart from Part 3-90 (about consolidation of groups), have no other assets and no *debt capital;
unless at least one member of the group would, apart from that Part and this Subdivision, be an *outward investing entity (non-ADI) or *outward investing entity (ADI) for all or part of that period.820-585(3)
Subsection (1) does not apply if, at each time in the period mentioned in subsection (2), all the *ADIs that are *members of the group then are *specialist credit card institutions.
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