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Outward investing entity (ADI)

There are 5 steps an outward investing entity (ADI) takes to calculate if they have met the thin capitalisation rules.

Step 1: Calculate the adjusted average equity capital

How to calculate the adjusted average equity capital if you're an outward investing entity (ADI).

Step 2: Calculate the safe harbour capital amount

How to calculate the safe harbour capital amount if you're an outward investing entity (ADI).

Step 3: Calculate the worldwide capital amount

How to calculate the worldwide capital amount if you're an outward investing entity (ADI).

Step 4: Calculate the arm's length capital amount

How to calculate the arm's length capital amount if you're an outward investing entity (ADI).

Step 5: Calculate the debt deductions disallowed

How to calculate the debt deductions disallowed if you're an outward investing entity (ADI).

Worked example of calculations for an ADI outward investing entity

The steps an ADI outward investing entity takes to determine whether it will have debt deductions disallowed.

QC48192