Income Tax Assessment Act 1997
Chapter 4 inserted by No 162 of 2001.
Part 4-5 inserted by No 162 of 2001.
Division 820 inserted by No 162 of 2001.
Subdiv 820-FB (heading) substituted by No 64 of 2005.
Subdiv 820-FB inserted by No 117 of 2002. For application provision see Div 820 of the Income Tax (Transitional Provisions) Act 1997 .
This section has effect for the purposes of applying Subdivision 820-E to the *head company or single company in relation to a period (the test period ) that is all or part of the grouping period.
Subdivision 820-E applies to the head company or single company if it is classified as an inward investing entity (ADI) because of section 820-609 .
S 820-615(1) amended by No 64 of 2005.
The average equity capital of the *head company or single company for the test period is:
(a) the average value, for that period, of all the *ADI equity capital of the company; plus
(b) the average value, for that period, of the amount worked out under subsection 820-613(3) .
To calculate an average value for the purposes of this Division, see Subdivision 820-G .
S 820-615(2) substituted by No 142 of 2003.
The safe harbour capital amount of the *head company or single company for the test period is worked out using the following method statement. Method statement
Work out the average value, for the test period, of the *head company ' s or single company ' s *risk-weighted assets.
Multiply the result of step 1 by 6%. The result of this step is the safe harbour capital amount .
S 820-615(3) amended by No 110 of 2014, s 3 and Sch 1 item 17, by substituting " 6% " for " 4% " in method statement, step 2, applicable to assessments for income years starting on or after 1 July 2014.
For each of the establishment entity ' s *Australian permanent establishments covered by the choice, the *risk-weighted assets of the *head company or single company include that part of the entity ' s risk-weighted assets that:
(a) is attributable to that Australian permanent establishment; and
(b) is not attributable to the entity ' s *OB activities.
S 820-615(4) substituted by No 64 of 2005; inserted by No 117 of 2002.
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