Income Tax Assessment Act 1997
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).
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|
|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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