Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-H - Control of entities  

TC direct control interest, TC indirect control interest and TC control tracing interest

SECTION 820-855   TC direct control interest in a company  

820-855(1)  
A thin capitalisation direct control interest (or a TC direct control interest ) that an entity holds in a company (except a *corporate limited partnership) at a particular time is the percentage of the direct control interest (if any) that the entity holds in the company at that time under the provisions applied by subsection (2).

Note:

For the TC direct control interest that an entity holds in a corporate limited partnership, see section 820-865 .

820-855(2)  
For the purposes of subsection (1), provisions of Part X of the Income Tax Assessment Act 1936 are applied with the modifications set out in the following table.


Modifications of provisions in Part X of the Income Tax Assessment Act 1936
Item Provisions Modifications
1 Section 350 (including any other provision in Part X of the Income Tax Assessment Act 1936 that defines a term used in the section) The section applies for the purposes of this Subdivision rather than only for the purposes of Part X of the Income Tax Assessment Act 1936
2 Subsections 350(6) and (7) If section 350 is used for the purposes of determining whether or not a company is a *foreign controlled Australian company, the subsections apply as if subsection (6) referred to *foreign entities and foreign entity rather than *Australian entities and Australian entity
If section 350 is used for the purposes of determining whether or not an entity is an *Australian controller of a *controlled foreign company, the subsections do not apply
3 Section 350 A reference to an *associate is taken to be a reference to an *associate entity


 

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