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INCOME TAX ASSESSMENT ACT 1997 - SECT 820.855

TC direct control interest in a company

  (1)   A thin capitalisation direct control interest (or a TC direct control interest ) that an entity holds in a company (except a * corporate limited partnership) at a particular time is the percentage of the direct control interest (if any) that the entity holds in the company at that time under the provisions applied by subsection   (2).

Note:   For the TC direct control interest that an entity holds in a corporate limited partnership, see section   820 - 865.

  (2)   For the purposes of subsection   (1), provisions of Part   X of the Income Tax Assessment Act 1936 are applied with the modifications set out in the following table.

 

Modifications of provisions in Part   X of the Income Tax Assessment Act 1936

Item

Provisions

Modifications

1

Section   350 (including any other provision in Part   X of the Income Tax Assessment Act 1936 that defines a term used in the section)

The section applies for the purposes of this Subdivision rather than only for the purposes of Part   X of the Income Tax Assessment Act 1936

2

Subsections   350(6) and (7)

If section   350 is used for the purposes of determining whether or not a company is a * foreign controlled Australian company, the subsections apply as if subsection   (6) referred to * foreign entities and foreign entity rather than * Australian entities and Australian entity

If section   350 is used for the purposes of determining whether or not an entity is an * Australian controller of a * controlled foreign company, the subsections do not apply

3

Section   350

A reference to an * associate is taken to be a reference to an * associate entity



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