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INCOME TAX ASSESSMENT ACT 1997 - SECT 820.295

What this Subdivision is about

This Subdivision sets out the thin capitalisation rules that apply to an entity that is both an authorised deposit-taking institution (an ADI ) and an Australian entity that has certain types of overseas investments. These rules deal with the following matters:

•       how to work out the entity's minimum capital amount for an income year;

•       how all or a part of the debt deductions claimed by the entity may be disallowed if the minimum capital amount is not reached;

•       how to apply these rules to a period that is less than an income year.

Table of sections

Operative provisions

820-300    Thin capitalisation rule for outward investing entities (ADI)

820-305    Minimum capital amount

820-310    Safe harbour capital amount

820-315    Arm's length capital amount

820-320    Worldwide capital amount

820-325    Amount of debt deduction disallowed

820-330    Application to part year periods

Operative provisions



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