Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The liability of a TSA contributing member under subsection 721 - 30(2) (the TSA liability ) is separate and distinct for all purposes from the group liability to which it relates (the linked group liability ). For example, the Commissioner may take proceedings to recover the unpaid amount of the TSA liability, proceedings to recover the unpaid amount of the linked group liability, or both.
Note: The TSA contributing member will not be jointly and severally liable for the linked group liability under section 721 - 15 (see subsection 721 - 15(3)). However, the head company of the group remains liable for the linked group liability.
Payment or discharge of TSA liability
(2) If an amount is paid or applied at a particular time towards discharging the TSA liability, the linked group liability is discharged at that time to the extent of the same amount.
Payment or discharge of linked group liability
(3) If:
(a) an amount is paid or applied at a particular time towards discharging the linked group liability; and
(b) as a result, the amount unpaid on the TSA liability at that time (apart from this section) exceeds the amount unpaid on the linked group liability at that time;
the TSA liability is discharged at that time to the extent of the excess.
(4) Subsections (2) and (3) operate in relation to a liability under a judgment (the judgment liability ):
(a) if the judgment liability is for the entire amount unpaid on the TSA liability--as if the judgment liability were the TSA liability; and
(b) if the judgment liability is for the entire amount unpaid on the linked group liability--as if the judgment liability were the linked group liability.
(5) This section does not discharge a liability to a greater extent than the amount of the liability.
Income Tax Assessment Act 1997
No. 38, 1997
Compilation No. 254
Compilation date: 14 October 2024
Includes amendments: Act No. 38, 2024
This compilation is in 12 volumes
Volume 1: sections 1 - 1 to 36 12 pt">- 55
Volume 2: sections 40 - 1 to 67 - 30
Volume 3: sections 70 - 1 to 121 12 pt">- 35
Volume 4: sections 122 - 1 to 197 12 pt">- 85
Volume 5: sections 200 - 1 to 253 - 15
Volume 6: sections 275 - 1 to 313 12 pt">- 85
Volume 7: sections 315 - 1 to 420 - 70
Volume 8: sections 615 - 1 to 721 - 40
Volume 9: sections 723 - 1 to 880 12p t; font-weight:bold">- 205
Volume 10: sections 900 - 1 to 995 - 1
Volume 11: Endnotes 1 to 3
Volume 12: Endnote 4
Each volume has its own contents
About this compilation
This compilation
This is a compilation of the Income Tax Assessment Act 1997 that shows the text of the law as amended and in force on 14 October 2024 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Chapter 3--Specialist liability rules
Part 3 - 95--Value shifting
Division 723--Direct value shifting by creating right over non - depreciating asset
Subdivision 723 - A--Reduction in loss from realising non - depreciating asset
723 - 1 Object
723 - 10 Reduction in loss from realising non - depreciating asset over which right has been created
723 - 15 Reduction in loss from realising non - depreciating asset at the same time as right is created over it
723 - 20 Exceptions
723 - 25 Realisation event that is only a partial realisation
723 - 35 Multiple rights created to take advantage of the $50,000 threshold
723 - 40 Application to CGT asset that is also trading stock or revenue asset
723 - 50 Effects if right created over underlying asset is also trading stock or a revenue asset
Subdivision 723 - B--Reducing reduced cost base of interests in entity that acquires non - depreciating asset under roll - over
723 - 105 Reduced cost base of interest reduced when interest realised at a loss
723 - 110 Direct and indirect roll - over replacement for underlying asset
Division 725--Direct value shifting affecting interests in companies and trusts
Guide to Division 725
725 - 1 What this Division is about
Subdivision 725 - A--Scope of the direct value shifting rules
725 - 45 Main object
725 - 50 When a direct value shift has consequences under this Division
725 - 55 Controlling entity test
725 - 65 Cause of the value shift
725 - 70 Consequences for down interest only if there is a material decrease in its market value
725 - 80 Who is an affected owner of a down interest?
725 - 85 Who is an affected owner of an up interest?
725 - 90 Direct value shift that will be reversed
725 - 95 Direct value shift resulting from reversal
Subdivision 725 - B--What is a direct value shift
725 - 145 When there is a direct value shift
725 - 150 Issue of equity or loan interests at a discount
725 - 155 Meaning of down interests , decrease time , up interests and increase time
725 - 160 What is the nature of a direct value shift?
725 - 165 If market value decrease or increase is only partly attributable to the scheme
Subdivision 725 - C--Consequences of a direct value shift
General
725 - 205 Consequences depend on character of down interests and up interests
725 - 210 Consequences for down interests depend on pre - shift gains and losses
Special cases
725 - 220 Neutral direct value shifts
725 - 225 Issue of bonus shares or units
725 - 230 Off - market buy - backs
Subdivision 725 - D--Consequences for down interest or up interest as CGT asset
725 - 240 CGT consequences; meaning of adjustable value
725 - 245 Table of taxing events generating a gain for interests as CGT assets
725 - 250 Table of consequences for adjustable values of interests as CGT assets
725 - 255 Multiple CGT consequences for the same down interest or up interest
Subdivision 725 - E--Consequences for down interest or up interest as trading stock or a revenue asset
725 - 310 Consequences for down interest or up interest as trading stock
725 - 315 Adjustable value of trading stock
725 - 320 Consequences for down interest or up interest as a revenue asset
725 - 325 Adjustable value of revenue asset
725 - 335 How to work out those consequences
725 - 340 Multiple trading stock or revenue asset consequences for the same down interest or up interest
Subdivision 725 - F--Value adjustments and taxed gains
725 - 365 Decreases in adjustable values of down interests (with pre - shift gains), and taxing events generating a gain
725 - 370 Uplifts in adjustable values of up interests under certain table items
725 - 375 Uplifts in adjustable values of up interests under other table items
725 - 380 Decreases in adjustable value of down interests (with pre - shift losses)
Division 727--Indirect value shifting affecting interests in companies and trusts, and arising from non - arm's length dealings
Guide to Division 727
727 - 1 What this Division is about
727 - 5 What is an indirect value shift?
727 - 10 How does this Division deal with indirect value shifts?
727 - 15 When does an indirect value shift have consequences under this Division?
727 - 25 Effect of this Division on realisations at a loss that occur before the nature or extent of an indirect value shift can be fully determined
Subdivision 727 - A--Scope of the indirect value shifting rules
727 - 95 Main object
727 - 100 When an indirect value shift has consequences under this Division
727 - 105 Ultimate controller test
727 - 110 Common - ownership nexus test (if both losing and gaining entities are closely held)
727 - 125 No consequences if losing entity is a complying superannuation entity etc.
Subdivision 727 - B--What is an indirect value shift
727 - 150 How to determine whether a scheme results in an indirect value shift
727 - 155 Providing economic benefits
727 - 160 When an economic benefit is provided in connection with a scheme
727 - 165 Preventing double - counting of economic benefits
Subdivision 727 - C--Exclusions
Guide to Subdivision 727 - C
727 - 200 What this Subdivision is about
General
727 - 215 Amount does not exceed $50,000
727 - 220 Disposal of asset at cost, or at undervalue if full value is not reflected in adjustable values of equity or loan interests in the losing entity
Indirect value shifts involving services
727 - 230 Services provided by losing entity to gaining entity for at least their direct cost
727 - 235 Services provided by gaining entity to losing entity for no more than a commercially realistic price
727 - 240 What services certain provisions apply to
727 - 245 How to work out certain amounts for the purposes of sections 727 - 230 and 727 - 235
Anti - overlap provisions
727 - 250 Distribution by an entity to a member or beneficiary
Miscellaneous
727 - 260 Shift down a wholly - owned chain of entities
Subdivision 727 - D--Working out the market value of economic benefits
727 - 300 What the rules in this Subdivision are for
727 - 315 Transfer, for its adjustable value, of depreciating asset acquired for less than $1,500,000
Subdivision 727 - E--Key concepts
727 - 350 Ultimate controller
727 - 355 Control (for value shifting purposes) of a company
727 - 360 Control (for value shifting purposes) of a fixed trust
727 - 365 Control (for value shifting purposes) of a non - fixed trust
727 - 370 Preventing double counting for percentage stake tests
727 - 375 Tests in this Subdivision are exhaustive
Common - ownership nexus and ultimate stake of a particular percentage
727 - 400 When 2 entities have a common - ownership nexus within a period
727 - 405 Ultimate stake of a particular percentage in a company
727 - 410 Ultimate stake of a particular percentage in a fixed trust
727 - 415 Rules for tracing
Subdivision 727 - F--Consequences of an indirect value shift
Guide to Subdivision 727 - F
727 - 450 What this Subdivision is about
Operative provisions
727 - 455 Consequences of the indirect value shift
Affected interests
727 - 460 Affected interests in the losing entity
727 - 465 Affected interests in the gaining entity
727 - 470 Exceptions
727 - 520 Equity or loan interest and related terms
727 - 525 Indirect equity or loan interest
Affected owners
727 - 530 Who are the affected owners
Choices about method to be used
727 - 550 Choosing the adjustable value method
727 - 555 Giving other affected owners information about the choice
Subdivision 727 - G--The realisation time method
727 - 600 What this Subdivision is about
Operative provisions
727 - 610 Consequences of indirect value shift
727 - 615 Reduction of loss on realisation event for affected interest in losing entity
727 - 620 Reduction of gain on realisation event for affected interest in gaining entity
727 - 625 Total gain reductions not to exceed total loss reductions
727 - 630 How cap in section 727 - 625 applies if affected interest is also trading stock or a revenue asset
727 - 635 Splitting an equity or loan interest
727 - 640 Merging equity or loan interests
727 - 645 Effect of CGT roll - over
Further exclusion for certain 95% services indirect value shifts if realisation time method must be used
727 - 700 When 95% services indirect value shift is excluded
95% services indirect value shifts that are not excluded
727 - 705 Another provision of the income tax law affects amount related to services by at least $100,000
727 - 710 Ongoing or recent service arrangement reduces value of losing entity by at least $100,000
727 - 715 Service arrangements reduce value of losing entity that is a group service provider by at least $500,000
727 - 720 Abnormal service arrangement reduces value of losing entity that is not a group service provider by at least $500,000
727 - 725 Meaning of predominantly - services indirect value shift
Subdivision 727 - H--The adjustable value method
Guide to Subdivision 727 - H
727 - 750 What this Subdivision is about
727 - 755 Consequences of indirect value shift
Reductions of adjustable value
727 - 770 Reduction under the adjustable value method
727 - 775 Has there been a disaggregated attributable decrease?
727 - 780 Working out the reduction on a loss - focussed basis
Uplifts of adjustable value
727 - 800 Uplift under the attributable increase method
727 - 805 Has there been a disaggregated attributable increase?
727 - 810 Scaling - down formula
Consequences of the method for various kinds of assets
727 - 830 CGT assets
727 - 835 Trading stock
727 - 840 Revenue assets
Subdivision 727 - K--Reduction of loss on equity or loan interests realised before the IVS time
727 - 850 Consequences of scheme under this Subdivision
727 - 855 Presumed indirect value shift
727 - 860 Conditions about the prospective gaining entity
727 - 865 How other provisions of this Division apply to support this Subdivision
727 - 870 Effect of CGT roll - over
727 - 875 Application to CGT asset that is also trading stock or revenue asset
Subdivision 727 - L--Indirect value shift resulting from a direct value shift
727 - 905 How this Subdivision affects the rest of this Division
727 - 910 Treatment of value shifted under the direct value shift
Chapter 4--International aspects of income tax
Part 4 - 5--General
Division 764--Source rules
Guide to Division 764
764 - 1 What this Division is about
Subdivision 764 - A--Source rules
764 - 5 Source rule for international tax agreements
Division 768--Foreign non - assessable income and gains
Subdivision 768 - A--Returns on foreign investment
Guide to Subdivision 768 - A
768 - 1 What this Subdivision is about
Foreign equity distributions on participation interests
768 - 5 Foreign equity distributions on participation interests
768 - 7 Foreign equity distributions entitled to a foreign income tax deduction
768 - 10 Meaning of foreign equity distribution
768 - 15 Participation test--minimum 10% participation
Subdivision 768 - B--Some items of income that are exempt from income tax
768 - 100 Foreign government officials in Australia
768 - 105 Compensation arising out of Second World War
768 - 110 Foreign residents deriving income from certain activities in Australia's exclusive economic zone or on or above Australia's continental shelf
Subdivision 768 - G--Reduction in capital gains and losses arising from CGT events in relation to certain voting interests in active foreign companies
Guide to Subdivision 768 - G
768 - 500 What this Subdivision is about
Operative provisions
768 - 505 Reducing a capital gain or loss from certain CGT events in relation to certain voting interests
Active foreign business asset percentage
768 - 510 Active foreign business asset percentage
768 - 515 Choices to apply market value method or book value method
768 - 520 Market value method--choice made under subsection 768 - 515(1)
768 - 525 Book value method--choice made under subsection 768 - 515(2)
768 - 530 Active foreign business asset percentage--modifications for foreign life insurance companies and foreign general insurance companies
768 - 533 Foreign company that is a FIF using CFC calculation method--treatment as AFI subsidiary under this Subdivision
768 - 535 Modified rules for foreign wholly - owned groups
Types of assets of a foreign company
768 - 540 Active foreign business assets of a foreign company
768 - 545 Assets included in the total assets of a foreign company
Voting percentages in a company
768 - 550 Direct voting percentage in a company
768 - 555 Indirect voting percentage in a company
768 - 560 Total voting percentage in a company
Subdivision 768 - R--Temporary residents
Guide to Subdivision 768 - R
768 - 900 What this Subdivision is about
Operative provisions
768 - 905 Objects
768 - 910 Income derived by temporary resident
768 - 915 Certain capital gains and capital losses of temporary resident to be disregarded
768 - 950 Individual becoming an Australian resident
768 - 955 Temporary resident who ceases to be temporary resident but remains an Australian resident
768 - 960 Temporary resident not attributable taxpayer for purposes of controlled foreign companies rules
768 - 970 Modification of rules for accruals system of taxation of certain non - resident trust estates
768 - 980 Interest paid by temporary resident
Division 770--Foreign income tax offsets
Guide to Division 770
770 - 1 What this Division is about
770 - 5 Object
Subdivision 770 - A--Entitlement rules for foreign income tax offsets
Basic entitlement rule for foreign income tax offset
770 - 10 Entitlement to foreign income tax offset
770 - 15 Meaning of foreign income tax , credit absorption tax and unitary tax
Subdivision 770 - B--Amount of foreign income tax offset
Guide to Subdivision 770 - B
770 - 65 What this Subdivision is about
Operative provisions
770 - 70 Amount of foreign income tax offset
770 - 75 Foreign income tax offset limit
770 - 80 Increase in offset limit for tax paid on amounts to which section 23AI or 23AK of the Income Tax Assessment Act 1936 apply
Subdivision 770 - C--Rules about payment of foreign income tax
Rules about when foreign tax is paid
770 - 130 When foreign income tax is considered paid--taxes paid by someone else
770 - 135 Foreign income tax paid by CFCs on attributed amounts
Rules about when foreign tax is considered not paid
770 - 140 When foreign income tax is considered not paid--anti - avoidance rule
Subdivision 770 - D--Administration
770 - 190 Amendment of assessments
Division 775--Foreign currency gains and losses
Guide to Division 775
775 - 5 What this Division is about
Subdivision 775 - A--Objects of this Division
775 - 10 Objects of this Division
Subdivision 775 - B--Realisation of forex gains or losses
775 - 15 Forex realisation gains are assessable
775 - 20 Certain forex realisation gains are exempt income
775 - 25 Certain forex realisation gains are non - assessable non - exempt income
775 - 27 Certain forex realisation gains are non - assessable non - exempt income
775 - 30 Forex realisation losses are deductible
775 - 35 Certain forex realisation losses are disregarded
775 - 40 Disposal of foreign currency or right to receive foreign currency--forex realisation event 1
775 - 45 Ceasing to have a right to receive foreign currency--forex realisation event 2
775 - 50 Ceasing to have an obligation to receive foreign currency--forex realisation event 3
775 - 55 Ceasing to have an obligation to pay foreign currency--forex realisation event 4
775 - 60 Ceasing to have a right to pay foreign currency--forex realisation event 5
775 - 65 Only one forex realisation event to be counted
775 - 70 Tax consequences of certain short - term forex realisation gains
775 - 75 Tax consequences of certain short - term forex realisation losses
775 - 80 You may choose not to have sections 775 - 70 and 775 - 75 apply to you
775 - 85 Forex cost base of a right to receive foreign currency
775 - 90 Forex entitlement base of a right to pay foreign currency
775 - 95 Proceeds of assuming an obligation to pay foreign currency
775 - 100 Net costs of assuming an obligation to receive foreign currency
775 - 105 Currency exchange rate effect
775 - 110 Constructive receipts and payments
775 - 115 Economic set - off to be treated as legal set - off
775 - 120 Non - arm's length transactions
775 - 125 CGT consequences of the acquisition of foreign currency as a result of forex realisation event 2 or 3
775 - 130 Certain deductions not allowable
775 - 135 Right to receive or pay foreign currency
775 - 140 Obligation to pay or receive foreign currency
775 - 145 Application of forex realisation events to currency and fungible rights and obligations
775 - 150 Transitional election
775 - 155 Applicable commencement date
775 - 160 Exception--event happens before the applicable commencement date
775 - 165 Exception--currency or right acquired, or obligation incurred, before the applicable commencement date
775 - 168 Exception--disposal or redemption of traditional securities
775 - 175 Application to things happening before commencement
Subdivision 775 - C--Roll - over relief for facility agreements
Guide to Subdivision 775 - C
775 - 180 What this Subdivision is about
Operative provisions
775 - 185 What is a facility agreement ?
775 - 190 What is an eligible security ?
775 - 195 You may choose roll - over relief for a facility agreement
775 - 200 Forex realisation event 4 does not apply
775 - 205 What is a roll - over ?
775 - 210 Notional loan
775 - 215 Discharge of obligation to pay the principal amount of a notional loan under a facility agreement--forex realisation event 6
775 - 220 Material variation of a facility agreement--forex realisation event 7
Subdivision 775 - D--Qualifying forex accounts that pass the limited balance test
Guide to Subdivision 775 - D
775 - 225 What this Subdivision is about
Operative provisions
775 - 230 Election to have this Subdivision apply to one or more qualifying forex accounts
775 - 235 Variation of election
775 - 240 Withdrawal of election
775 - 245 When does a qualifying forex account pass the limited balance test ?
775 - 250 Tax consequences of passing the limited balance test
775 - 255 Notional realisation when qualifying forex account starts to pass the limited balance test
775 - 260 Modification of tax recognition time
Subdivision 775 - E--Retranslation for qualifying forex accounts
Guide to Subdivision 775 - E
775 - 265 What this Subdivision is about
Operative provisions
775 - 270 You may choose retranslation for a qualifying forex account
775 - 275 Withdrawal of choice
775 - 280 Tax consequences of choosing retranslation for an account
775 - 285 Retranslation of gains and losses relating to a qualifying forex account--forex realisation event 8
Subdivision 775 - F--Retranslation under foreign exchange retranslation election under Subdivision 230 - D
Guide to Subdivision 775 - F
775 - 290 What this Subdivision is about
775 - 295 When this Subdivision applies
775 - 300 Tax consequences of choosing retranslation for arrangement
775 - 305 Retranslation of gains and losses relating to arrangement to which foreign exchange retranslation election applies--forex realisation event 9
775 - 310 When election ceases to apply to arrangement
775 - 315 Balancing adjustment when election ceases to apply to arrangement
Division 802--Foreign residents' income with an underlying foreign source
Subdivision 802 - A--Conduit foreign income
Guide to Subdivision 802 - A
802 - 5 What this Subdivision is about
Operative provisions
802 - 10 Objects
802 - 15 Foreign residents--exempting CFI from Australian tax
802 - 17 Trust estates and foreign resident beneficiaries--exempting CFI from Australian tax
802 - 20 Distributions between Australian corporate tax entities--non - assessable non - exempt income
802 - 25 Conduit foreign income of an Australian corporate tax entity
802 - 30 Foreign source income amounts
802 - 35 Capital gains and losses
802 - 40 Effect of foreign income tax offset on conduit foreign income
802 - 45 Previous declarations of conduit foreign income
802 - 50 Receipt of an unfranked distribution from another Australian corporate tax entity
802 - 55 No double benefits
802 - 60 No streaming of distributions
Division 815--Cross - border transfer pricing
Subdivision 815 - A--Treaty - equivalent cross - border transfer pricing rules
Guide to Subdivision 815 - A
815 - 1 What this Subdivision is about
Operative provisions
815 - 5 Object
815 - 10 Transfer pricing benefit may be negated
815 - 15 When an entity gets a transfer pricing benefit
815 - 20 Cross - border transfer pricing guidance
815 - 25 Modified transfer pricing benefit for thin capitalisation
815 - 30 Determinations negating transfer pricing benefit
815 - 35 Consequential adjustments
815 - 40 No double taxation
Subdivision 815 - B--Arm's length principle for cross - border conditions between entities
Guide to Subdivision 815 - B
815 - 101 What this Subdivision is about
Operative provisions
815 - 105 Object
815 - 110 Operation of Subdivision
815 - 115 Substitution of arm's length conditions
815 - 120 When an entity gets a transfer pricing benefit
815 - 125 Meaning of arm's length conditions
815 - 130 Relevance of actual commercial or financial relations
815 - 135 Guidance
815 - 140 Modification for thin capitalisation
815 - 145 Consequential adjustments
815 - 150 Amendment of assessments
Subdivision 815 - C--Arm's length principle for permanent establishments
Guide to Subdivision 815 - C
815 - 201 What this Subdivision is about
Operative provisions
815 - 205 Object
815 - 210 Operation of Subdivision
815 - 215 Substitution of arm's length profits
815 - 220 When an entity gets a transfer pricing benefit
815 - 225 Meaning of arm's length profits
815 - 230 Source rules for certain arm's length profits
815 - 235 Guidance
815 - 240 Amendment of assessments
Subdivision 815 - D--Special rules for trusts and partnerships
Guide to Subdivision 815 - D
815 - 301 What this Subdivision is about
Operative provisions
815 - 305 Special rule for trusts
815 - 310 Special rules for partnerships
Subdivision 815 - E--Reporting obligations for country by country reporting entities
Guide to Subdivision 815 - E
815 - 350 What this Subdivision is about
Operative provisions
815 - 355 Requirement to give statements
815 - 360 Replacement reporting periods
815 - 365 Exemptions
815 - 370 Meaning of country by country reporting entity (or CBC reporting entity )
815 - 375 Meaning of country by country reporting parent (or CBC reporting parent )
815 - 380 Meaning of country by country reporting group (or CBC reporting group )
Division 820--Thin capitalisation rules
Guide to Division 820
820 - 1 What this Division is about
820 - 10 Map of Division
Subdivision 820 - A--Preliminary
820 - 30 Object of Division
820 - 31 Order of application of Subdivisions
820 - 32 Exemption for private or domestic assets and non - debt liabilities
820 - 35 Application--$2 million threshold
820 - 37 Application--assets threshold
820 - 39 Exemption of certain special purpose entities
820 - 40 Meaning of debt deduction
Subdivision 820 - AA--Thin capitalisation rules for general class investors
Guide to Subdivision 820 - AA
820 - 45 What this Subdivision is about
Operative provisions
820 - 46 Thin capitalisation rule for general class investors
820 - 47 Choices under subsection 820 - 46(3) or (4)
820 - 48 Where entity is taken to make third party debt test choice
820 - 49 Meaning of obligor group etc.
820 - 50 Amount of debt deduction disallowed
820 - 51 Meaning of fixed ratio earnings limit and group ratio earnings limit
820 - 52 Meaning of tax EBITDA
820 - 53 Meaning of group ratio , GR group , GR group parent and GR group member
820 - 54 Meaning of GR group net third party interest expense , financial statement net third party interest expense and adjusted net third party interest expense
820 - 55 Meaning of entity EBITDA and GR group EBITDA
820 - 56 Special deduction for previously FRT disallowed amounts--fixed ratio test
820 - 57 Meaning of FRT disallowed amount
820 - 58 FRT disallowed amount is treated as zero where subsequent choice means fixed ratio test does not apply
820 - 59 When FRT disallowed amount is treated as zero for companies and trusts
820 - 60 Excess tax EBITDA amount
Subdivision 820 - B--Thin capitalisation rules for outward investing financial entities (non - ADI)
Guide to Subdivision 820 - B
820 - 65 What this Subdivision is about
Operative provisions
820 - 85 Thin capitalisation rule for outward investing financial entities (non - ADI)
820 - 90 Maximum allowable debt
820 - 100 Safe harbour debt amount--outward investing financial entity (non - ADI)
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
Subdivision 820 - C--Thin capitalisation rules for inward investing financial entities (non - ADI)
Guide to Subdivision 820 - C
820 - 180 What this Subdivision is about
Operative provisions
820 - 185 Thin capitalisation rule for inward investing financial entities (non - ADI)
820 - 190 Maximum allowable debt
820 - 200 Safe harbour debt amount--inward investment vehicle (financial)
820 - 210 Safe harbour debt amount--inward investor (financial)
820 - 217 Worldwide gearing debt amount--inward investment vehicle (financial)
820 - 219 Worldwide gearing debt amount--inward investor (financial)
820 - 220 Amount of debt deduction disallowed
820 - 225 Application to part year periods
Subdivision 820 - D--Thin capitalisation rules for outward investing entities (ADI)
Guide to Subdivision 820 - D
820 - 295 What this Subdivision is about
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
Subdivision 820 - E--Thin capitalisation rules for inward investing entities (ADI)
Guide to Subdivision 820 - E
820 - 390 What this Subdivision is about
Operative provisions
820 - 395 Thin capitalisation rule for inward investing entities (ADI)
820 - 400 Minimum capital amount
820 - 405 Safe harbour capital amount
820 - 410 Arm's length capital amount
820 - 415 Amount of debt deduction disallowed
820 - 420 Application to part year periods
Subdivision 820 - EAA--Debt deduction limitation rules for debt deduction creation (all relevant entities)
Guide to Subdivision 820 - EAA
820 - 423 What this Subdivision is about
Operative provisions
820 - 423A Debt deduction limitation rule for debt deduction creation (all relevant entities)
820 - 423AA ..... Exceptions for acquisition of certain CGT assets
820 - 423B Amount of debt deduction disallowed
820 - 423C This Subdivision does not limit reduction of debt deductions under other provisions
820 - 423D Schemes relating to this Subdivision
820 - 423E Modified meaning of associate pair
820 - 423F Modified meaning of Australian entity
Subdivision 820 - EAB--Third party debt concepts
Guide to Subdivision 820 - EAB
820 - 427 What this Subdivision is about
Operative provisions
820 - 427A Meaning of third party earnings limit and third party debt conditions
820 - 427B Modified third party debt conditions for conduit financing
820 - 427C Conduit financing conditions
820 - 427D Modified meaning of associate entity
820 - 427E Modified meaning of Australian entity
Subdivision 820 - EA--Some financial entities may choose to be treated as ADIs
820 - 430 When choice can be made, and what effect it has
820 - 435 Conditions
820 - 440 Revocation of choice
820 - 445 How this Subdivision interacts with Subdivision 820 - FA
Subdivision 820 - FA--How the thin capitalisation rules apply to consolidated groups and MEC groups
Guide to Subdivision 820 - FA
820 - 579 What this Subdivision is about
Operative provisions
820 - 581 How this Division applies to head company for income year in which group comes into existence or ceases to exist
820 - 583 Classification of head company
820 - 584 Exempt special purpose entities treated as not being member of group
820 - 585 Exemption for consolidated group headed by foreign - controlled Australian ADI or its holding company
820 - 587 Additional application of Subdivision 820 - D to MEC group that includes foreign - controlled Australian ADI
820 - 588 Choice to treat specialist credit card institutions as being financial entities and not ADIs
820 - 589 How Subdivision 820 - D applies to a MEC group
820 - 590 Treatment of FRT disallowed amounts--joining case
820 - 591 Effect of transfer of FRT disallowed amount
820 - 592 Cancelling the transfer of FRT disallowed amount
820 - 593 FRT disallowed amount cannot be applied for income year ending after the joining time
820 - 594 Treatment of FRT disallowed amounts--leaving case
Subdivision 820 - FB--Grouping branches of foreign banks and foreign financial entities with a consolidated group, MEC group or single Australian resident company
Guide to Subdivision 820 - FB
820 - 595 What this Subdivision is about
Choice to group with branches of foreign banks and foreign financial entities
820 - 597 Choice by head company of consolidated group or MEC group
820 - 599 Choice by Australian resident company outside consolidatable group and MEC group
Effect of choice
820 - 601 Application
820 - 603 General
820 - 605 Effect on establishment entity if certain debt deductions disallowed
820 - 607 Effect on test periods under this Division
820 - 609 Effect on classification of head company or single company
820 - 610 Choice not to be outward investing entity (ADI) or inward investing entity (ADI)
820 - 611 Values to be based on what would be in consolidated accounts for group
820 - 613 How Subdivision 820 - D applies
820 - 615 How Subdivision 820 - E applies
Subdivision 820 - G--Calculating the average values
Guide to Subdivision 820 - G
820 - 625 What this Subdivision is about
How to calculate the average values
820 - 630 Methods of calculating average values
820 - 635 The opening and closing balances method
820 - 640 The 3 measurement days method
820 - 645 The frequent measurement method
Special rules about values and valuation
820 - 675 Amount to be expressed in Australian currency
820 - 680 Valuation of assets, liabilities and equity capital
820 - 682 Recognition of assets and liabilities--modifying application of accounting standards
820 - 685 Valuation of debt capital
820 - 690 Commissioner's power
Subdivision 820 - H--Control of entities
Guide to Subdivision 820 - H
820 - 740 What this Subdivision is about
Australian controller of a foreign entity
820 - 745 What is an Australian controlled foreign entity?
820 - 750 What is an Australian controller of a controlled foreign company?
820 - 755 What is an Australian controller of a controlled foreign trust?
820 - 760 What is an Australian controller of a controlled foreign corporate limited partnership?
Foreign controlled Australian entity
820 - 780 What is a foreign controlled Australian entity?
820 - 785 What is a foreign controlled Australian company?
820 - 790 What is a foreign controlled Australian trust?
820 - 795 What is a foreign controlled Australian partnership?
Thin capitalisation control interest
820 - 815 General rule about thin capitalisation control interest in a company, trust or partnership
820 - 820 Special rules about calculating TC control interest held by an entity
820 - 825 Special rules about calculating TC control interests held by a group of entities
820 - 830 Special rules about determining percentage of TC control interest
820 - 835 Commissioner's power
TC direct control interest, TC indirect control interest and TC control tracing interest
820 - 855 TC direct control interest in a company
820 - 860 TC direct control interest in a trust
820 - 865 TC direct control interest in a partnership
820 - 870 TC indirect control interest in a company, trust or partnership
820 - 875 TC control tracing interest in a company, trust or partnership
Subdivision 820 - HA--Controlled foreign entity debt and controlled foreign entity equity
Guide to Subdivision 820 - HA
820 - 880 What this Subdivision is about
820 - 881 Application
820 - 885 What is controlled foreign entity debt ?
820 - 890 What is controlled foreign entity equity ?
Subdivision 820 - I--Associate entities
Guide to Subdivision 820 - I
820 - 900 What this Subdivision is about
820 - 905 Associate entity
820 - 910 Associate entity debt
820 - 915 Associate entity equity
820 - 920 Associate entity excess amount
Subdivision 820 - J--Equity interest in a trust or partnership
Guide to Subdivision 820 - J
820 - 925 What this Subdivision is about
820 - 930 Equity interest in a trust or partnership
Subdivision 820 - JA--Worldwide debt and equity concepts
Guide to Subdivision 820 - JA
820 - 931 What this Subdivision is about
Operative provisions
820 - 932 Worldwide debt and worldwide equity
820 - 933 Statement worldwide debt, statement worldwide equity and statement worldwide assets
820 - 935 Meaning of audited consolidated financial statements
Subdivision 820 - K--Zero - capital amount
Guide to Subdivision 820 - K
820 - 940 What this Subdivision is about
820 - 942 How to work out the zero - capital amount
Subdivision 820 - KA--Cost - free debt capital and excluded equity interests
Guide to Subdivision 820 - KA
820 - 945 What this Subdivision is about
820 - 946 Cost - free debt capital and excluded equity interest
Subdivision 820 - L--Record keeping requirements
Guide to Subdivision 820 - L
820 - 950 What this Subdivision is about
Records about Australian permanent establishments
820 - 960 Records about Australian permanent establishments
820 - 962 Records about Australian permanent establishments--exemptions from Australian accounting standards
820 - 965 Review of Commissioner's decision
Records about arm's length amounts
820 - 980 Records about arm's length capital amount
820 - 985 Records about group ratio
Offences committed by certain entities
820 - 990 Offences--treatment of partnerships
820 - 995 Offences--treatment of unincorporated companies
Division 830--Foreign hybrids
Guide to Division 830
830 - 1 What this Division is about
Subdivision 830 - A--Meaning of "foreign hybrid"
830 - 5 Foreign hybrid
830 - 10 Foreign hybrid limited partnership
830 - 15 Foreign hybrid company
Subdivision 830 - B--Extension of normal partnership provisions to foreign hybrid companies
830 - 20 Treatment of company as a partnership
830 - 25 Partners are the shareholders in the company
830 - 30 Individual interest of a partner in net income etc. equals percentage of notional distribution of company's profits
830 - 35 Partner's interest in assets
830 - 40 Control and disposal of share in partnership income
Subdivision 830 - C--Special rules applicable while an entity is a foreign hybrid
830 - 45 Partner's revenue and net capital losses from foreign hybrid not to exceed partner's loss exposure amount
830 - 50 Deduction etc. where partner's foreign hybrid revenue loss amount and foreign hybrid net capital loss amount are less than partner's loss exposure amount
830 - 55 Meaning of foreign hybrid net capital loss amount
830 - 60 Meaning of loss exposure amount
830 - 65 Meaning of outstanding foreign hybrid revenue loss amount
830 - 70 Meaning of outstanding foreign hybrid net capital loss amount
830 - 75 Extended meaning of subject to foreign tax
Subdivision 830 - D--Special rules applicable when an entity becomes or ceases to be a foreign hybrid
830 - 80 Setting the tax cost of partners' interests in the assets of an entity that becomes a foreign hybrid
830 - 85 Setting the tax cost of assets of an entity when it ceases to be a foreign hybrid
830 - 90 What the expression tax cost is set means
830 - 95 What the expression tax cost setting amount means
830 - 100 What the expression tax cost means
830 - 105 What the expression asset - based income tax regime means
830 - 110 No disposal of assets etc. on entity becoming or ceasing to be a foreign hybrid
830 - 115 Tax losses cannot be transferred to a foreign hybrid
830 - 120 End of CFC's last statutory accounting period
830 - 125 How long interest in asset, or asset, held
Division 832--Hybrid mismatch rules
Guide to Division 832
832 - 1 What this Division is about
Subdivision 832 - A--Preliminary
Guide to Subdivision 832 - A
832 - 5 What this Subdivision is about
Operative provisions
832 - 10 Entitlement to receive payment
832 - 15 Entitlement to receive non - cash benefits
832 - 20 Losses that arise from payments or parts of payments
832 - 25 Recipients and payers of a payment
832 - 30 How this Division applies to entities
832 - 35 Single entity rule otherwise not disregarded
832 - 40 Schemes outside Australia
832 - 45 Relationship between this Division and other charging provisions in this Act
832 - 50 Relationship between this Division and Division 820
832 - 55 Division does not affect foreign residence rules
832 - 60 Valuation of trading stock affected by hybrid mismatch rules
Subdivision 832 - B--Concepts relating to mismatches
Guide to Subdivision 832 - B
832 - 100 What this Subdivision is about
Operative provisions
832 - 105 When a payment gives rise to a deduction/non - inclusion mismatch
832 - 110 When a payment gives rise to a deduction/deduction mismatch
832 - 115 Disregard effect of Division in determining deductions
832 - 120 Meaning of foreign income tax deduction
832 - 125 Meaning of subject to Australian income tax
832 - 130 Meaning of subject to foreign income tax
832 - 135 Safe harbour for translation rates
Subdivision 832 - C--Hybrid financial instrument mismatch
Guide to Subdivision 832 - C
832 - 175 What this Subdivision is about
Operative provisions
832 - 180 Deduction not allowable--Australian primary response
832 - 185 Inclusion in assessable income--Australian secondary response
832 - 190 Exception where entity not a party to the structured arrangement
832 - 195 When a hybrid financial instrument mismatch is an offshore hybrid mismatch
832 - 200 When a payment gives rise to a hybrid financial instrument mismatch
832 - 205 Meaning of Division 832 control group
832 - 210 Meaning of structured arrangement
832 - 215 Hybrid mismatch
832 - 220 Hybrid requirement--payments under financial instruments
832 - 225 Hybrid requirement--payments under transfers of certain financial instruments
832 - 230 Hybrid mismatch--integrity rule for substitute payments
832 - 235 Extended operation of this Subdivision in relation to concessional foreign taxes
832 - 240 Adjustment if hybrid financial instrument payment is income in a later year
Subdivision 832 - D--Hybrid payer mismatch
Guide to Subdivision 832 - D
832 - 280 What this Subdivision is about
Operative provisions
832 - 285 Deduction not allowable--Australian primary response
832 - 290 Inclusion in assessable income--Australian secondary response
832 - 295 Exception where entity not a party to the structured arrangement
832 - 300 When a hybrid payer mismatch is an offshore hybrid mismatch
832 - 305 When a payment gives rise to a hybrid payer mismatch
832 - 310 Hybrid mismatch
832 - 315 Hybrid requirement--assume payment was made to same recipient but by an ungrouped payer
832 - 320 Hybrid payer
832 - 325 Meaning of liable entity
832 - 330 Neutralising amount
832 - 335 Adjustment if hybrid payer has dual inclusion income in a later year
Subdivision 832 - E--Reverse hybrid mismatch
Guide to Subdivision 832 - E
832 - 375 What this Subdivision is about
Operative provisions
832 - 380 Deduction not allowable--Australian primary response
832 - 385 Exception where entity not a party to the structured arrangement
832 - 390 When a reverse hybrid mismatch is an offshore hybrid mismatch
832 - 395 When a payment gives rise to a reverse hybrid mismatch
832 - 400 Hybrid mismatch
832 - 405 Hybrid requirement--assume payment was made to an investor
832 - 410 Reverse hybrid
Subdivision 832 - F--Branch hybrid mismatch
Guide to Subdivision 832 - F
832 - 450 What this Subdivision is about
Operative provisions
832 - 455 Deduction not allowable
832 - 460 Exception where entity not a party to the structured arrangement
832 - 465 When a branch hybrid mismatch is an offshore hybrid mismatch
832 - 470 Branch hybrid mismatch
832 - 475 Hybrid mismatch
832 - 480 Hybrid requirement--payment made directly or indirectly to a branch hybrid
832 - 485 Branch hybrid
Subdivision 832 - G--Deducting hybrid mismatch
Guide to Subdivision 832 - G
832 - 525 What this Subdivision is about
Operative provisions
832 - 530 Deduction not allowable
832 - 535 Additional requirements for secondary response
832 - 540 When a deducting hybrid mismatch is an offshore hybrid mismatch
832 - 545 When an amount gives rise to a deducting hybrid mismatch
832 - 550 Deducting hybrid
832 - 555 Identifying a secondary response country
832 - 560 Neutralising amount
832 - 565 Adjustment if deducting hybrid has dual inclusion income in a later year
Subdivision 832 - H--Imported hybrid mismatch
Guide to Subdivision 832 - H
832 - 605 What this Subdivision is about
Operative provisions
832 - 610 Deduction not allowable
832 - 615 When a payment gives rise to an imported hybrid mismatch
832 - 620 Hybrid mismatch
832 - 625 Meaning of importing payment
832 - 630 Working out the amount of the imported hybrid mismatch
832 - 635 Carry forward of residual offshore hybrid mismatches
Subdivision 832 - I--Dual inclusion income
Guide to Subdivision 832 - I
832 - 675 What this Subdivision is about
Operative provisions
832 - 680 Dual inclusion income, and when an entity is eligible to apply it
Subdivision 832 - J--Integrity rule
832 - 720 What this Subdivision is about
Operative provisions
832 - 725 Payments made to interposed foreign entity (integrity measure)--denial of deduction
832 - 730 Back to back arrangements, etc.
832 - 735 Determination may specify kinds of scheme and circumstances where no denial of deduction
Subdivision 832 - K--Modifications for Division 230 (about taxation of financial arrangements)
Guide to Subdivision 832 - K
832 - 775 What this Subdivision is about
Operative provisions
832 - 780 Section 832 - 20 applies to Division 230 losses
832 - 785 Adjusting Division 230 loss
832 - 790 Modifications relating to Division 230 gains and losses
Division 840--Withholding taxes
Guide to Division 840
840 - 1 What this Division is about
Subdivision 840 - M--Managed investment trust withholding tax
Guide to Subdivision 840 - M
840 - 800 What this Subdivision is about
Operative provisions
840 - 805 Liability for managed investment trust withholding tax
840 - 810 When managed investment trust withholding tax is payable
840 - 815 Certain income is non - assessable non - exempt income
840 - 820 Agency rules
Subdivision 840 - S--Labour mobility program withholding tax
Guide to Subdivision 840 - S
840 - 900 What this Subdivision is about
Operative provisions
840 - 905 Liability for labour mobility program withholding tax
840 - 906 Covered labour mobility programs
840 - 910 When labour mobility program withholding tax is payable
840 - 915 Certain income is non - assessable non - exempt income
840 - 920 Overpayment of labour mobility program withholding tax
Division 842--Exempt Australian source income and gains of foreign residents
Subdivision 842 - B--Some items of Australian source income of foreign residents that are exempt from income tax
Guide to Subdivision 842 - B
842 - 100 What this Subdivision is about
842 - 105 Amounts of Australian source ordinary income and statutory income that are exempt
Subdivision 842 - I--Investment manager regime
Guide to Subdivision 842 - I
842 - 200 What this Subdivision is about
Object of this Subdivision
842 - 205 Object of this Subdivision
IMR concessions
842 - 210 IMR concessions apply only to foreign residents etc.
842 - 215 IMR concessions
842 - 220 Meaning of IMR entity
842 - 225 Meaning of IMR financial arrangement
IMR widely held entities
842 - 230 Meaning of IMR widely held entity
842 - 235 Rules for determining total participation interests for the purposes of the widely held test
842 - 240 Extended meaning of IMR widely held entity --temporary circumstances outside entity's control
Independent Australian fund managers
842 - 245 Meaning of independent Australian fund manager
842 - 250 Reductions in IMR concessions if independent Australian fund manager entitled to substantial share of IMR entity's income
Division 855--Capital gains and foreign residents
Guide to Division 855
855 - 1 What this Division is about
Subdivision 855 - A--Disregarding a capital gain or loss by foreign residents
855 - 5 Objects of this Subdivision
855 - 10 Disregarding a capital gain or loss from CGT events
855 - 15 When an asset is taxable Australian property
855 - 16 Meaning of permanent establishment article
855 - 20 Taxable Australian real property
855 - 25 Indirect Australian real property interests
855 - 30 Principal asset test
855 - 32 Disregard market value of duplicated non - TARP assets
855 - 35 Reducing a capital gain or loss from a business asset--Australian permanent establishments
855 - 40 Capital gains and losses of foreign residents through fixed trusts
Subdivision 855 - B--Becoming an Australian resident
855 - 45 Individual or company becomes an Australian resident
855 - 50 Trust becomes a resident trust
855 - 55 CFC becomes an Australian resident
Division 880--Sovereign entities and activities
Subdivision 880 - A--Basic concepts
Guide to Subdivision 880 - A
880 - 10 What this Subdivision is about
Operative provisions
880 - 15 Meaning of sovereign entity
880 - 20 Meaning of sovereign entity group
Subdivision 880 - B--Basic tax treatment of sovereign entities
Guide to Subdivision 880 - B
880 - 50 What this Subdivision is about
Operative provisions
880 - 55 Sovereign entity liable to pay tax
880 - 60 Bodies politic of foreign countries and foreign government agencies treated as foreign residents
Subdivision 880 - C--Sovereign immunity
Guide to Subdivision 880 - C
880 - 100 What this Subdivision is about
Operative provisions
880 - 105 Sovereign entity's income from membership interest etc. in trust or company--non - assessable non - exempt income
880 - 110 Sovereign entity's deduction from membership interest etc.--loss not deductible
880 - 115 Sovereign entity's capital gain from membership interest etc.--gain disregarded
880 - 120 Sovereign entity's capital loss from membership interest etc. in trust or company--loss disregarded
880 - 125 Covered sovereign entities
880 - 130 Meaning of public non - financial entity and public financial entity
Subdivision 880 - D--Consular activities
Guide to Subdivision 880 - D
880 - 200 What this Subdivision is about
Operative provisions
880 - 205 Income from consular functions--non - assessable non - exempt income
Table of Subdivisions
723 - A Reduction in loss from realising non - depreciating asset
723 - B Reducing reduced cost base of interests in entity that acquires non - depreciating asset under roll - over
Table of sections
723 - 1 Object
723 - 10 Reduction in loss from realising non - depreciating asset over which right has been created
723 - 15 Reduction in loss from realising non - depreciating asset at the same time as right is created over it
723 - 20 Exceptions
723 - 25 Realisation event that is only a partial realisation
723 - 35 Multiple rights created to take advantage of the $50,000 threshold
723 - 40 Application to CGT asset that is also trading stock or revenue asset
723 - 50 Effects if right created over underlying asset is also trading stock or a revenue asset