Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 820.875

  (1)   A thin capitalisation control tracing interest (or a TC control tracing interest ) that an entity holds in a company, trust or a partnership at a particular time is equal to the * TC direct control interest in the company, trust or partnership that the entity holds at that time.

  (2)   Despite subsection   (1), an entity is taken to hold a * TC control tracing interest in a company, trust or partnership that is equal to 100% at a particular time if, at that time:

  (a)   the entity and its * associate entities hold a total of * TC direct control interests in the company, trust or partnership that is 50% or more; or

  (b)   the following subparagraphs apply:

  (i)   the entity (the controlling entity ) and its associate entities hold a total of TC direct control interests that is 40% or more in the company, trust or partnership;

  (ii)   no other entity or entities (except the controlling entity, its associate entities or entities including the controlling entity or its associate entities) control the company, trust or partnership; or

  (c)   the entity (whether or not together with associate entities) controls the company, trust or partnership.

  (3)   Paragraph   (2)(b) does not apply if the * TC direct control interests mentioned in subparagraph   (2)(b)(i) are held in a * corporate limited partnership.