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INCOME TAX ASSESSMENT ACT 1997 - SECT 820.815

General rule about thin capitalisation control interest in a company, trust or partnership

Meaning of TC control interest

  (1)   The thin capitalisation control interest (or TC control interest ) that an entity holds in a company, trust or partnership at a particular time is the total of the following interests:

  (a)   the * TC direct control interest (if any) held by the entity in the company, trust or partnership at that time;

  (b)   the * TC indirect control interest (if any) held by the entity in the company, trust or partnership at that time;

  (c)   the TC direct control interests (if any) held by the entity's * associate entities in the company, trust or partnership at that time;

  (d)   the TC indirect control interests (if any) held by the entity's associate entities in the company, trust or partnership at that time.

This section has effect subject to sections   820 - 820 to 820 - 835 (which set out special rules to avoid double counting).

Note:   For the rules about a TC direct control interest, see sections   820 - 855 to 820 - 865. For the rules about a TC indirect control interest, see sections   820 - 870 to 820 - 875.

  (2)   This section does not apply to an * associate entity of the entity if:

  (a)   the associate entity is a * foreign entity and the associate entity is such an associate entity only because of subsection   820 - 905(3A); or

  (b)   the associate entity is such an associate entity only because of subsection   820 - 905(3B).


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