Commonwealth Consolidated Acts Commonwealth Consolidated ActsEntity is not also an inward investment vehicle (financial)
(1) The entity's maximum allowable debt for an income year is the greatest of the following amounts if the entity is not also an * inward investment vehicle (financial) for all or any part of that year:
(a) the * safe harbour debt amount;
(c) unless the entity has * worldwide equity of nil or a negative amount--the * worldwide gearing debt amount.
Entity is also an inward investment vehicle (financial)
(2) The entity's maximum allowable debt for an income year is the greatest of the following amounts if the entity is also an * inward investment vehicle (financial) for all or any part of that year:
(a) the * safe harbour debt amount;
(c) unless subsection (3) applies to the entity--the * worldwide gearing debt amount.
Inward investment vehicles that are not eligible for the worldwide gearing debt amount
(3) This subsection applies to an entity, if:
(a) the entity has * statement worldwide equity, or * statement worldwide assets, of nil or a negative amount; or
(b) * audited consolidated financial statements for the entity for the income year do not exist; or
(c) the result of applying the following formula is greater than 0.5:
where:
"average Australian assets" of an entity is the average value, for the statement period mentioned in subsection (4), of all the assets of the entity, other than:
(a) any assets attributable to the entity's * overseas permanent establishments; or
(b) any * debt interests held by the entity, to the extent to which any value of the interests is all or a part of the * controlled foreign entity debt of the entity; or
(c) any * equity interests or debt interests held by the entity, to the extent to which any value of the interests is all or a part of the * controlled foreign entity equity of the entity.
(4) For the purposes of the definition of average Australian assets in subsection (3) the statement period is the period for which the * audited consolidated financial statements for the entity for the income year have been prepared.
(5) For the purposes of the formula in paragraph (3)(c), if:
(a) an amount is included in * statement worldwide assets in respect of an asset; and
(b) the asset was acquired, held or otherwise dealt with by an entity for a purpose (other than an incidental purpose) that included ensuring that subsection (3) does not apply to an entity; and
(c) as a result of the acquisition, holding or dealing with of the asset, the amount included in statement worldwide assets exceeds the amount (including nil) that would otherwise be so included;
apply the amount of the excess to reduce statement worldwide assets (or statement worldwide assets as reduced by a previous application of this subsection).