INCOME TAX ASSESSMENT ACT 1997 - SECT 820.295 What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997 - SECT 820.295
What this Subdivision is aboutThis 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.
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