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 820-865   820-865   TC direct control interest in a partnership  


A thin capitalisation direct control interest (or a TC direct control interest ) that an entity holds in a partnership at a particular time is whichever of the following percentages is applicable, and if there are 2 or more such percentages, the greatest of them:


(a) in the case of a *corporate limited partnership - 100% if the entity is a *general partner of the partnership;


(b) in the case of a partnership that is not a corporate limited partnership - the percentage of the control of voting power in the partnership that the entity has at that time;


(c) in any case - the percentage that the entity holds, or is entitled to acquire, at that time, of any of the following:


(i) the total amount of assets or capital contributed to the partnership;

(ii) the total rights of partners to distributions of capital, assets or profits on the dissolution of the partnership;

(iii) the total rights of partners to distributions of capital, assets or profits otherwise than on the dissolution of the partnership.

 

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