Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012516815555
Ruling
Subject: Division 820 - Thin Capitalisation
The ruling concerned the following:
1. For the purposes of the definition of 'average Australian assets' in subsection 820-37(1) of the Income Tax Assessment Act 1997 (ITAA 1997), is substantial equipment attributable to overseas permanent establishments of the Company?
2. If the answer to Question 1 is yes, will the Company need to apportion the value of the substantial equipment that is attributable to overseas permanent establishments for the purposes of determining the 'average Australian assets' in paragraph 820-37(1)(c) of the ITAA 1997?
Decision
The Commissioner ruled that:
1 Yes. The substantial equipment is attributable to overseas permanent establishments of the Company for the purposes of the definition of 'average Australian assets' in subsection 820-37(1) of the ITAA 1997.
2 Yes. The Company will need to apportion the value of the substantial equipment that is attributable to overseas permanent establishments for the purposes of determining the 'average Australian assets' in paragraph 820-37(1)(c) of the ITAA 1997.