INCOME TAX ASSESSMENT ACT 1997 [ARCHIVE]
For the purposes of working out the *safe harbour capital amount of a *resident TC group for an income year, if:
(a) the group includes an entity (the ADI subsidiary ) that is at the end of the income year both a *100% subsidiary of a *foreign bank and an *ADI; and
(b) the ADI subsidiary has:
(i) issued *debentures or *debt interests covered by section 128F (which exempts interest on the debentures or debt interests from withholding tax) of the Income Tax Assessment Act 1936 ; and
(ii) made proceeds of the debentures or debt interests available to an *Australian permanent establishment of the foreign bank, as loans to the Australian permanent establishment, for use in its Australian business; and
(c) the Australian permanent establishment is not in the resident TC group at the end of the income year;
the group's *risk-weighted assets at a particular time are reduced by the total amounts of proceeds of the debentures or debt interests that are at that time so made available by the ADI subsidiary.
This section applies only to the 2001-2002 income year and to each of the next 4 income years.
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