Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A thin capitalisation direct control interest (or a TC direct control interest ) that an entity holds in a company (except a * corporate limited partnership) at a particular time is the percentage of the direct control interest (if any) that the entity holds in the company at that time under the provisions applied by subsection (2).
Note: For the TC direct control interest that an entity holds in a corporate limited partnership, see section 820 - 865.
(2) For the purposes of subsection (1), provisions of Part X of the Income Tax Assessment Act 1936 are applied with the modifications set out in the following table.
Modifications of provisions in Part X of the Income Tax Assessment Act 1936 | |||
Item | Provisions | Modifications | |
1 | Section 350 (including any other provision in Part X of the Income Tax Assessment Act 1936 that defines a term used in the section) | The section applies for the purposes of this Subdivision rather than only for the purposes of Part X of the Income Tax Assessment Act 1936 | |
2 | Subsections 350(6) and (7) | If section 350 is used for the purposes of determining whether or not a company is a * foreign controlled Australian company, the subsections apply as if subsection (6) referred to * foreign entities and foreign entity rather than * Australian entities and Australian entity If section 350 is used for the purposes of determining whether or not an entity is an * Australian controller of a * controlled foreign company, the subsections do not apply | |
3 | Section 350 | A reference to an * associate is taken to be a reference to an * associate entity | |