Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An entity (not an individual) has a relevant debt interest in a * loss company at a particular time if, at that time:
(a) the entity has a controlling stake in the loss company (see section 165 - 115Z); and
(b) the entity is owed by the loss company a debt of not less than $10,000 (a debt ) or debts at least one of which is not less than $10,000 (each debt of not less than $10,000 is also called a debt ).
(2) An entity (not an individual) also has a relevant debt interest in a * loss company at a particular time if, at that time:
(a) the entity has a controlling stake in the loss company; and
(b) the entity is owed by an entity (the debtor entity ) other than the loss company a debt of not less than $10,000 (also a debt ) or debts at least one of which is not less than $10,000 (each debt of not less than $10,000 is also called a debt ); and
(c) the debtor entity has a relevant equity interest or a relevant debt interest in the loss company.
(3) The total of the debts referred to in subsections (1) and (2) constitutes the entity's relevant debt interest in the * loss company.
(3A) A * widely held company that, apart from this subsection, would have a relevant debt interest in a * loss company at a particular time does not have such an interest at that time.
(3B) Subsection (3A) does not apply if:
(a) an entity has a controlling stake in the loss company (see section 165 - 115Z); and
(b) that entity has a direct or indirect interest in, or is owed a debt by, the * widely held company, being an interest or debt in respect of which:
(i) the entity could, if a * CGT event happened in respect of the interest or debt, make a * capital loss (other than a capital loss that would be disregarded) that reflects any part of the loss company's overall loss; or
(ii) the entity has deducted or can deduct, or could deduct at a later time, an amount in respect of the cost of the * acquisition, or a net loss on the * disposal, of the interest or debt, where the deduction reflected or would have reflected, or would reflect, as the case may be, any part of the company's overall loss.
(3C) Subsection (3A) does not apply in respect of a particular time if an entity that had a direct or indirect interest in, or was owed a debt by, the * widely held company at an earlier time, and had a controlling stake in the * loss company (see section 165 - 115Z) at the earlier time:
(a) made a * capital loss (other than a capital loss that was disregarded) because a * CGT event happened in respect of the interest or debt, where the capital loss reflected any part of the loss company's overall loss; or
(b) has deducted or could have deducted at an earlier time, or could deduct at a later time, an amount in respect of the cost of the * acquisition, or a net loss on the * disposal, of the interest or debt, where the deduction reflected or would have reflected, or would reflect, as the case may be, any part of the company's overall loss.
(4) An entity (the first entity ) that, apart from this subsection, would have a relevant debt interest in a * loss company at a particular time does not have such an interest if, at that time, there is no other entity that has a direct or indirect interest in, or is owed a debt by, the first entity, being an interest or debt in respect of which:
(a) the other entity could, if a * CGT event happened in respect of the interest or debt, make a * capital loss (other than a capital loss that would be disregarded) that reflects any part of the loss company's overall loss; or
(b) the other entity could deduct, or can deduct or could deduct at a later time:
(i) an amount in respect of the cost of the * acquisition of the interest or debt; or
(ii) a net loss on the * disposal of the interest or debt;
where the deduction reflects, or would have reflected, any part of the loss company's overall loss.
(4A) Subsection (4) does not apply if the first entity is a * widely held company.
(5) Subsection (4) does not apply to the first entity in respect of a particular time if an entity that had a direct or indirect interest in, or was owed a debt by, the first entity at an earlier time:
(a) made a capital loss (other than a capital loss that would be disregarded) at an earlier time because a * CGT event happened in respect of the interest or debt, where the capital loss reflected any part of the * loss company's overall loss; or
(b) has deducted or could have deducted at an earlier time, or could deduct at a later time, an amount in respect of the cost of the * acquisition, or a net loss on the * disposal, of the interest or debt, where the deduction reflected or would have reflected, or would reflect, as the case may be, any part of the company's overall loss.
(6) An individual is not taken to have a relevant debt interest in a * loss company at any time.
(7) A partnership that consists only of individuals is not taken to have a relevant debt interest in a * loss company at any time.
(8) If section 106 - 30, 106 - 50 or 106 - 60 would treat an act referred to in that section that is done in relation to a debt as having been done by an individual, the debt is not a relevant debt interest.