• Legal database
Legal database
House of Representatives

New Business Tax System (Thin Capitalisation) Bill 2001

New Business Tax System (Thin Capitalisation) Act 2001

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Index

Schedule 1: Thin capitalisation rules
Bill reference Paragraph number
Item 1, section 405 4.35
Item 1, section 415 4.40
Item 1, section 820-35 1.39
Item 1, section 820-40 1.57
Item 1, paragraph 820-40(1)(c) 1.63
Item 1, subsection 820-40(2) 1.61
Item 1, paragraph 820-40(2)(f) 1.61
Item 1, subsection 820-40(3) 1.62
Item 1, section 820-85 3.74
Item 1, subsection 820-85(1) 3.13, 3.26, 3.75
Item 1, subsection 820-85(2) 2.9, 3.18
Item 1, subsection 820-85(2), items 1 and 2 in the table 7.21, 7.22, 7.24
Item 1, subsection 820-85(2), items 1(a) and (b) in the table 3.20
Item 1, subsection 820-85(2), item 2 in the table 3.23
Item 1, subsection 820-85(2), item 3 in the table 3.20, 7.87
Item 1, subsection 820-85(2), item 4 in the table 7.87
Item 1, subsection 820-85(3) 3.29, 3.36
Item 1, section 820-90 Example 3.3
Item 1, subsection 820-90(1) 3.40
Item 1, subsection 820-90(2) 3.41, 3.62, 3.63
Item 1, section 820-95 3.44, 3.46
Item 1, section 820-100 3.55
Item 1, subsection 820-100(1) 3.58
Item 1, subsection 820-100(2) 3.56
Item 1, subsection 820-100(3) 3.58, 3.59
Item 1, subsection 820-105(1) 10.14
Item 1, paragraph 820-105(2)(a) 10.20
Item 1, paragraphs 820-105(2)(b) to (d) 10.21
Item 1, paragraph 820-105(2)(e) 10.24
Item 1, paragraph 820-105(3)(a) 10.35
Item 1, paragraph 820-105(3)(b) 10.37
Item 1, paragraph 820-105(3)(c) 10.42
Item 1, paragraph 820-105(3)(d) 10.43
Item 1, paragraphs 820-105(3)(e) and (f) 10.48
Item 1, paragraph 820-105(3)(g) 10.50
Item 1, paragraph 820-105(3)(h) 10.51
Item 1, paragraph 820-105(3)(i) 10.53
Item 1, paragraph 820-105(3)(j) 10.54
Item 1, paragraph 820-105(3)(k) 10.57
Item 1, paragraph 820-105(3)(l) 10.59
Item 1, subsection 820-105(4) 10.62
Item 1, section 820-110 Example 3.3, 3.65
Item 1, subsections 820-110(1) and (2) 3.66
Item 1, section 820-115 3.74, 3.75
Item 1, section 820-120 3.28, 3.76, 3.77
Item 1, section 820-185 2.28
Item 1, subsection 820-185(1) 2.9, 2.21, 2.27, 2.104, 2.108
Item 1, paragraph 820-185(1)(a) 3.13
Item 1, subsection 820-185(2) 2.14
Item 1, subsection 820-185(2), item 1 in the table Example 2.6, 2.16
Item 1, subsection 820-185(2), item 2 in the table 2.17
Item 1, subsection 820-185(2), item 3 in the table 2.19
Item 1, subsection 820-185(2), item 4 in the table 2.20
Item 1, subsection 820-185(3) 2.22, 2.27, 2.35
Item 1, section 820-190 2.29
Item 1, section 820-195 2.33, 2.35
Item 1, section 820-195, step 5 of the method statement 2.55
Item 1, subsection 820-200(1) 2.64, 2.91
Item 1, subsection 820-200(2) 2.65
Item 1, subsection 820-200(3) 2.84
Item 1, section 820-205 2.95
Item 1, section 820-205, step 1 of the method statement 2.97
Item 1, subsection 820-210(1) 2.99
Item 1, subsection 820-210(2) 2.100
Item 1, subsection 820-210(3) 2.100
Item 1, subsection 820-215(1) 10.14
Item 1, paragraph 820-215(2)(a) 10.20
Item 1, paragraphs 820-215(2)(b) to (d) 10.21
Item 1, paragraph 820-215(2)(e) 10.24
Item 1, paragraph 820-215(3)(a) 10.35
Item 1, paragraph 820-215(3)(b) 10.37
Item 1, paragraph 820-215(3)(c) 10.42
Item 1, paragraph 820-215(3)(d) 10.43
Item 1, paragraphs 820-215(3)(e) and (f) 10.48
Item 1, paragraph 820-215(3)(g) 10.50
Item 1, paragraph 820-215(3)(h) 10.51
Item 1, paragraph 820-215(3)(i) 10.54
Item 1, paragraph 820-215(3)(j) 10.57
Item 1, subsection 820-215(4) 10.62
Item 1, paragraph 820-215(3)(k) 10.59
Item 1, section 820-220 2.104, 2.108
Item 1, section 820-225 2.25
Item 1, subsection 820-225(1) 2.109
Item 1, subsections 820-225(2) and (3), item 4 in the table 2.110
Item 1, subsection 820-225(3), items 1 to 3 in the table 2.111
Item 1, subsection 820-300(1) 5.17, 5.22
Item 1, subsection 820-300(2) 5.19
Item 1, paragraph 820-300(2)(c) 7.87
Item 1, subsection 820-300(3) 5.25, 5.32
Item 1, section 820-305 5.33
Item 1, section 820-310 5.35
Item 1, subsection 820-315(1) 10.66
Item 1, paragraphs 820-315(3)(a) and (b) 10.78
Item 1, paragraph 820-315(3)(c) 10.80
Item 1, paragraph 820-315(3)(d) 10.82
Item 1, paragraph 820-315(3)(e) 10.83
Item 1, paragraphs 820-315(3)(f) and (h) 10.84
Item 1, paragraph 820-315(3)(g) 10.85
Item 1, subsection 820-315(4) 10.86
Item 1, subsection 820-320(1) 5.41
Item 1, subsection 820-320(2) 5.42
Item 1, subsection 820-320(3) 5.43
Item 1, section 820-325 5.46, 10.68
Item 1, section 820-330 5.21
Item 1, subsection 820-395(1) 4.15, 4.19, 4.22, 4.29
Item 1, subsection 820-395(2) 4.17, 6.62
Item 1, subsection 820-395(3) 4.23, 4.32
Item 1, section 820-400 4.33
Item 1, section 820-405, step 1 in the method statement 4.27
Item 1, subsection 820-410(1) 10.66
Item 1, paragraphs 820-410(3)(a) and (b) 10.78
Item 1, paragraph 820-410(3)(c) 10.80
Item 1, paragraph 820-410(3)(d) 10.82
Item 1, paragraph 820-410(3)(e) 10.83
Item 1, paragraphs 820-410(3)(f) and (g) 10.84
Item 1, subsection 820-410(4) 10.86
Item 1, section 820-415 4.29, 4.41, 10.68
Item 1, section 820-420 4.18, 4.42
Item 1, subsection 820-460(1) 6.6
Item 1, subsection 820-460(2) 6.8
Item 1, paragraph 820-460(2)(b) 6.66
Item 1, paragraph 820-460(2)(c) 6.56
Item 1, paragraph 820-460(2)(d) 6.63
Item 1, subsection 820-460(3) 6.6, 6.34
Item 1, subsection 820-460(4) 6.34
Item 1, subsection 820-460(5) 6.10, 6.34
Item 1, section 820-465 6.7, 6.36
Item 1, section 820-470 8.40
Item 1, paragraph 820-470(a) 6.31
Item 1, paragraph 820-470(b) 6.32
Item 1, subsection 820-500(1) 6.13, 6.17
Item 1, subsection 820-500(2) 6.13
Item 1, subsection 820-500(3) 6.14
Item 1, subsection 820-500(4) 6.16
Item 1, section 820-505 6.17
Item 1, subsection 820-505(1) 6.19
Item 1, subsection 820-505(2) 6.20
Item 1, paragraphs 820-505(2)(b) and (c) 6.20
Item 1, subsection 820-505(3) 6.12, 6.19
Item 1, section 820-510 6.17
Item 1, subsection 820-510(1) 6.21
Item 1, paragraphs 510(1)(b) and (c) 6.21
Item 1, subsection 820-510(2) 6.22
Item 1, subsection 820-510(3) 6.21
Item 1, paragraph 820-510(3)(a) 6.24
Item 1, paragraphs 820-515(a) to (c) 6.20, 6.21
Item 1, section 820-520 6.17, 6.26
Item 1, section 820-525 6.18
Item 1, section 820-530 6.28
Item 1, section 820-550 6.11
Item 1, subsection 820-550(1) 6.38
Item 1, subsection 820-550(2) 6.39
Item 1, subsections 820-550(3) and (4) 6.41
Item 1, subsection 820-550(5) 6.47
Item 1, subsection 820-550(6) 6.48
Item 1, subsection 820-550(7) 6.50
Item 1, subsection 820-550(8) 6.55
Item 1, section 820-555 6.66
Item 1, section 820-560 6.43, 6.52
Item 1, subsection 820-565(1) 6.56
Item 1, subsection 820-565(2) 6.57
Item 1, subsection 820-565(3) 6.58
Item 1, subsection 820-570(1) 6.59
Item 1, subsection 820-570(2) 6.60, 6.64
Item 1, subsection 820-575(1) 6.63
Item 1, subsections 820-575(3) and (4) 6.65
Item 1, subsection 820-630(1) 8.8
Item 1, subsection 820-630(2) 8.10
Item 1, subsection 820-630(3) 8.11
Item 1, section 820-635 8.8, 8.14
Item 1, section 820-640 8.8
Item 1, subsection 820-640(1) 8.18
Item 1, subsection 820-640(2) 8.19
Item 1, subsection 820-640(3) 8.20
Item 1, section 820-645 8.8
Item 1, subsection 820-645(1) 8.21, 8.22, 8.23
Item 1, paragraph 820-645(1)(a) 8.22
Item 1, paragraph 820-645(1)(b) 8.30, 8.31
Item 1, subsection 820-645(2) 8.25
Item 1, subsection 820-645(3) 8.26, 8.27
Item 1, subsection 820-645(4) 8.28, 8.29
Item 1, subsection 820-645(5) 8.32
Item 1, subsection 820-645(6) 8.32
Item 1, section 820-675 8.33
Item 1, subsections 820-675(1) and (2) 8.34
Item 1, subsection 820-675(3) 8.36
Item 1, section 820-680 8.33
Item 1, subsection 820-680(1) 8.37
Item 1, section 820-685 8.41
Item 1, section 820-690 8.49
Item 1, section 820-745 7.11, 7.14
Item 1, section 820-750 7.20
Item 1, section 820-755 7.22
Item 1, subsection 820-760(1) 7.23
Item 1, subsection 820-760(2) 7.16, 7.18
Item 1, section 820-780 7.29
Item 1, subsection 820-785(1) 7.31, 7.32
Item 1, subsection 820-785(2) 7.35
Item 1, subsection 820-790(1) 7.37
Item 1, subsection 820-790(2) 7.40
Item 1, subsection 820-790(3) 7.42
Item 1, subsection 820-795(1) 7.44
Item 1, subsection 820-795(2) 7.48
Item 1, subsection 820-795(3) 7.54
Item 1, section 820-815 7.18, 7.56, 7.87
Item 1, section 820-820 7.73
Item 1, subsection 820-820(2) 7.74
Item 1, subsection 820-820(3) 7.75
Item 1, subsection 820-820(4) 7.76
Item 1, subsection 820-820(5) 7.78
Item 1, subsection 820-825(2) 7.79
Item 1, subsection 820-825(3) 7.80
Item 1, subsection 820-825(4) 7.81
Item 1, section 820-830 7.82
Item 1, paragraph 820-835(a) 7.83
Item 1, paragraph 820-835(b) 7.84
Item 1, section 820-855 7.59
Item 1, subsections 820-860(1) and (2) 7.61
Item 1, subsection 820-860(3) 7.62
Item 1, section 820-865 7.18, 7.65
Item 1, paragraphs 820-865(a) and (b) 7.63
Item 1, paragraph 820-865(c) 7.64
Item 1, subsection 820-870(1) 7.66
Item 1, subsection 820-870(2) 7.67
Item 1, subsection 820-870(3) 7.69
Item 1, subsection 820-870(4) 7.70
Item 1, subsections 820-870(5) and (6) 7.71
Item 1, section 820-875 7.72
Item 1, subsection 820-905(1) 7.92
Item 1, subsection 820-905(2) 7.90
Item 1, subsection 820-905(3) 7.92
Item 1, subsections 820-905(4) and (5) 7.93
Item 1, subsections 820-905(6) and (7) 7.94
Item 1, subsection 820-905(8) 7.98
Item 1, section 820-910 2.37
Item 1, section 820-915 2.39
Item 1, section 820-920 Example 3.1
Item 1, subsection 820-920(2) 2.42
Item 1, subsection 820-920(3) 2.45
Item 1, subsection 820-920(4) 2.46
Item 1, subsection 820-930(1), items 1 to 8 in the table 1.71
Item 1, subsection 820-930(2) 1.67
Item 1, subsection 820-942(1) 2.66
Item 1, subsection 820-942(2) 2.77
Item 1, subsection 820-942(3) 2.80
Item 1, section 820-960 9.7, 9.11
Item 1, subsection 820-960(1) 9.9
Item 1, subsection 820-960(2) 9.18
Item 1, paragraph 820-960(2)(b) 9.13, 9.16
Item 1, subsection 820-960(3) 9.10
Item 1, subsections 820-960(4) and (5) 9.19
Item 1, section 820-965 9.20
Item 1, section 820-980 10.88
Item 1, sections 820-990 and 820-995 9.22
Item 2 4.50
Item 3 1.95
Item 4 1.90
Item 5 1.98
Item 5, subsection 160AFD(9) 5.54
Item 5 3.79
Items 6 to 9 4.53
Items 10 and 11 (consequential amendments to section 262A) 9.21
Items 10 and 11, subsections 262A(2AA) and 262A(3) 10.89
Items 10 and 11 1.93, 9.24
Items 12 and 13 1.92
Items 14 and 15 1.91
Item 16 3.79
Item 16, section 25-90 1.101, 5.54
Items 17 to 19 1.104
Item 20 3.79
Items 20 to 22, sections 820-15 and 820-20 1.85
Item 22, section 820-10 4.44, 9.2
Item 22, subsection 820-10(1) 1.81, 10.90
Item 22, subsection 820-10(2) 1.82, 9.18, 9.23
Item 22, section 820-15 4.44
Item 22, section 820-25 1.84, 4.45, 5.52, 8.7, 8.52
Item 22, section 820-30 6.29
Item 22, section 820-35 1.86, 5.53
Item 22, subsection 820-35(2) 1.87
Item 22, subsection 820-35(3) 1.87
Item 23 1.83, 4.51
Item 24 3.79
Items 24 to 26 1.85
Item 25 4.54
Item 26 10.90
Schedule 2: Dictionary amendments
Bill reference Paragraph number
Item 2, definition of 'accounting standards' in subsection 995-1(1) 6.31, 8.34, 8.37, 9.11
Item 7, definition of 'arm's length capital amount' in subsection 995-1(1) 10.64
Item 8, definition of 'arm's length debt amount' in subsection 995-1(1) 10.11
Item 10, definition of 'associate entity debt' in subsection 995-1(1) 2.38
Item 11, definition of 'associate entity equity' in subsection 995-1(1) 1.66, 2.39
Item 12, definition of 'associate entity excess amount' in subsection 995-1(1) 2.42
Item 13, definition of 'associate interest' in subsection 995-1(1) 7.93, 7.94, 7.98
Item 14, definition of 'Australian controlled foreign entity' in subsection 995-1(1) 7.11
Item 15, definition of 'Australian controller' in subsection 995-1(1) 7.20, 7.22, 7.23
Item 16, definition of 'Australian entity' in subsection 995-1(1) 7.19
Item 17, definition of 'Australian permanent establishment' in subsection 995-1(1) 9.8
Item 19, definition of 'average equity capital' in subsection 995-1(1) 4.23, 4.32, 6.64
Item 20, definition of 'controlled foreign company' in subsection 995-1(1) 7.12, 7.13
Item 21, definition of 'controlled foreign corporate limited partnership' in subsection 995-1(1) 7.16
Item 22, definition of 'controlled foreign entity debt' in subsection 995-1(1) 3.48
Item 23, definition of 'controlled foreign entity equity' in subsection 995-1(1) 1.66, 3.48
Item 24, definition of 'controlled foreign trust' in subsection 995-1(1) 7.12, 7.15
Item 26, definition of 'debt capital' in subsection 995-1(1) 1.52, 2.26
Item 27, definition of 'debt deduction' in subsection 995-1(1) 1.57
Item 29, definition of 'equity capital' in subsection 995-1(1) 1.65, 4.24, 5.28, 5.32
Item 31, definition of 'financial entity' in subsection 995-1(1) 2.18, 2.78, 3.24
Item 33, definition of 'foreign controlled Australian company' in subsection 995-1(1) 7.31
Item 34, definition of 'foreign controlled Australian entity' in subsection 995-1(1) 7.29
Item 35, definition of 'foreign controlled Australian partnership' in subsection 995-1(1) 7.44, 7.48
Item 36, definition of 'foreign controlled Australian trust' in subsection 995-1(1) 7.37
Item 37, definition of 'foreign entity' in subsection 995-1(1) 7.28
Item 39, definition of 'inward investing entity (ADI)' in subsection 995-1(1) 4.17, 6.62
Item 40, definition of 'inward investing entity (non-ADI)' in subsection 995-1(1) 2.14, 6.47
Item 41, definition of 'inward investment vehicle (financial)' in subsection 995-1(1) 6.50
Item 42, definition of 'inward investment vehicle (general)' in subsection 995-1(1) 6.48
Item 45, definition of 'maximum allowable debt' in subsection 995-1(1) 3.38
Item 47, definition of 'minimum capital amount' in subsection 995-1(1) 4.33, 5.33
Item 48, definition of 'non-debt liabilities' in subsection 995-1(1) 2.52
Item 50, definition of 'on-lent amount' in subsection 995-1(1) 2.59, 2.86, 3.60
Item 51, definition of 'outward investing entity (ADI)' in subsection 995-1(1) 6.55
Item 52, definition of 'outward investing entity (non-ADI)' in subsection 995-1(1) 3.18, 6.38
Item 53, definition of 'outward investor (financial)' in subsection 995-1(1) 6.41
Item 54, definition of 'outward investor (general)' in subsection 995-1(1) 6.39
Item 55, definition of 'overseas permanent establishment' in subsection 995-1(1) 3.22
Item 56, definition of 'prudential capital deduction' in subsection 995-1(1) 5.38
Item 57, definition of 'risk-weighted assets' in subsection 995-1(1) 4.37, 5.36
Item 59, definition of 'safe harbour capital amount' in subsection 995-1(1) 4.35, 5.35
Item 60, definition of 'safe harbour debt amount' in subsection 995-1(1) 2.33
Item 63, definition of 'TC control interest' in subsection 995-1(1) 7.56
Item 64, definition of 'TC control tracing interest' in subsection 995-1(1) 7.72
Item 65, definition of 'TC direct control interest' in subsection 995-1(1) 7.59, 7.61, 7.63
Item 66, definition of 'TC indirect control interest' in subsection 995-1(1) 7.66
Item 67, definition of 'Tier 1 prudential capital deduction' in subsection 995-1(1) 5.39
Item 70, definition of 'worldwide capital amount' in subsection 995-1(1) 5.42
Item 71, definition of 'worldwide debt' in subsection 995-1(1) 3.68
Item 72, definition of 'worldwide equity' in subsection 995-1(1) 1.65, 3.69
Item 74, definition of 'zero-capital amount' in subsection 995-1(1) 2.66, 6.43


View full documentView full documentBack to top