Commonwealth Consolidated Acts Commonwealth Consolidated ActsThe amount of * debt deduction disallowed under subsection 820 - 395(1) is worked out using the following formula:
where:
"average debt" means the average value, for the income year, of all the * debt capital of the entity that gives rise to * debt deductions of the entity (other than * allowable OB deductions) for that or any other income year.
"capital shortfall" means the amount by which the entity's * average equity capital for that year (see subsection 820 - 395(3)) is less than the entity's * minimum capital amount for that year.
"debt deduction" means each * debt deduction of the entity (other than * allowable OB deduction) for the income year.
Note: The disallowed amount also does not form part of the cost base of a CGT asset. See section 110 - 54.