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INCOME TAX ASSESSMENT ACT 1997 - SECT 820.180

What this Subdivision is about

This Subdivision sets out the thin capitalisation rules that apply to a foreign entity or a foreign controlled Australian entity that 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.

Table of sections

Operative provisions

820 - 185   Thin capitalisation rule for inward investing entities (non - ADI)

820 - 190   Maximum allowable debt

820 - 195   Safe harbour debt amount--inward investment vehicle (general)

820 - 200   Safe harbour debt amount--inward investment vehicle (financial)

820 - 205   Safe harbour debt amount--inward investor (general)

820 - 210   Safe harbour debt amount--inward investor (financial)

820 - 215   Arm's length debt amount

820 - 216   Worldwide gearing debt amount--inward investment vehicle (general)

820 - 217   Worldwide gearing debt amount--inward investment vehicle (financial)

820 - 218   Worldwide gearing debt amount--inward investor (general)

820 - 219   Worldwide gearing debt amount--inward investor (financial)

820 - 220   Amount of debt deduction disallowed

820 - 225   Application to part year periods


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