Commonwealth Consolidated Acts Commonwealth Consolidated ActsThis Subdivision sets out the thin capitalisation rules that apply to an Australian entity that has certain types of overseas investments and is not an authorised deposit - taking institution (an ADI ). These rules deal with the following matters:
• how to work out the entity's maximum allowable debt for an income year;
• how all or a part of the debt deductions claimed by the entity may be disallowed if the maximum allowable debt is exceeded;
• how to apply these rules to a period that is less than an income year.
820 - 85 Thin capitalisation rule for outward investing entities (non - ADI)
820 - 90 Maximum allowable debt
820 - 95 Safe harbour debt amount--outward investor (general)
820 - 100 Safe harbour debt amount--outward investor (financial)
820 - 105 Arm's length debt amount
820 - 110 Worldwide gearing debt amount--outward investor that is not also an inward investment vehicle
820 - 111 Worldwide gearing debt amount--outward investor that is also an inward investment vehicle
820 - 115 Amount of debt deduction disallowed
820 - 120 Application to part year periods