Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-FB - Grouping branches of foreign banks and foreign financial entities with a consolidated group, MEC group or single Australian resident company  

Effect of choice

SECTION 820-610   Choice not to be outward investing entity (ADI) or inward investing entity (ADI)  

820-610(1)    
This section applies if:

(a)    apart from this section, the *head company or single company would, under section 820-609 , be an *outward investing entity (ADI) or an *inward investing entity (ADI) for the trial period; and

(b)    at all times in the trial period, each of the following entities that is an *ADI is a *specialist credit card institution:

(i) the head company or single company;

(ii) an establishment entity whose *Australian permanent establishments the head company or single company has chosen under section 820-597 or 820-599 to have treated as part of the company for the period.

820-610(2)    

The *head company or single company is an outward investing entity (non-ADI) and an outward investor (financial) for the trial period if:

(a)    apart from this section, the company would, under section 820-609 , be an *outward investing entity (ADI) for the trial period; and

(b)    

the company chooses, before lodging its *income tax return for the income year including the trial period, to be an outward investing entity (non-ADI) and an outward investor (financial) for that period.

820-610(3)    

The *head company or single company is an inward investing entity (non-ADI) and an inward investment vehicle (financial) for the trial period if:

(a)    apart from this section, the company would, under section 820-609 , be an *inward investing entity (ADI) for the trial period; and

(b)    

the company chooses, before lodging its *income tax return for the income year including the trial period, to be an inward investing entity (non-ADI) and an inward investment vehicle (financial) for that period.

820-610(4)    
This section has effect despite sections 820-85 , 820-185 and 820-609 .