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Question 35

Last updated 7 August 2014

This question requires information for all thin capitalisation entity types.

The dollar amounts or values asked for in this question are all based on your tax records.

You must complete all labels. However, if you have written code 7 or 8 (ADI) at item 32, label A, you do not need to complete item 35, label D.

At item 35, label A, write the total amount of your debt deductions for the income year that are allowable before applying the thin capitalisation provisions in Division 820 of the ITAA 1997.

At item 35, label B, write the amount of your debt deductions for any debt interest held or ultimately funded (via a back-to-back arrangement) by a non-resident person who is either a controller or majority owner of you, or is controlled or majority owned by the same persons as you (this includes majority ownership through other companies, partnerships or trusts). If none of the debt deductions shown at item 35, label A were for debt interests held or ultimately funded by such non-resident entities, write '0' (zero) at label B.

At item 35, label C, write the amount of your debt deductions that are disallowed for the income year under the following sections if you have written:

  • code 1 or 2 at item 32, label A, the amount disallowed under sections 820-115 and 820-120
  • code 3, 4, 5 or 6 at item 32, label A, the amount disallowed under sections 820-220 and 820-225
  • code 7 at item 32, label A, the amount disallowed under sections 820-325 and 820-330
  • code 8 at item 32, label A, the amount disallowed under sections 820-415 and 820-420.

At item 35, label D, write the amount of your adjusted average debt for the income year worked out under the following sections if you have written:

  • code 1 or 2 at item 32, label A, under subsection 820-85(3)
  • code 3, 4, 5 or 6 at item 32, label A, under subsection 820-185(3).

QC26054