New Business Tax System (Thin Capitalisation) Act 2001 (162 of 2001)

Schedule 1   Thin capitalisation rules

Part 2   Consequential and other amendments

Income Tax Assessment Act 1936

2   After subsection 128F(1)

Insert:

(1A) This section also applies to interest paid by a company in respect of a debenture if:

(a) the company was a non-resident when it issued the debenture; and

(b) the company is a non-resident when the interest is paid; and

(c) the debenture was issued, and the interest is paid, by the company in carrying on business at or through a permanent establishment in Australia; and

(d) the issue of the debenture satisfies the public offer test set out in subsection (3) or (4).