Income Tax Assessment Act 1997

Chapter 4 inserted by No 162 of 2001.

Part 4-5 inserted by No 162 of 2001.

Division 820 inserted by No 162 of 2001.

Subdiv 820-FA inserted by No 117 of 2002. For application provision see Div 820 of the Income Tax (Transitional Provisions) Act 1997 .

S 820-591 inserted by No 23 of 2024, s 3 and Sch 2 item 88, effective 1 July 2024. For application provisions, see note under s 705-60 .

Former s 820-591 repealed by No 101 of 2006, s 3 and Sch 3 item 17, effective 1 January 2008. S 820-591 formerly read:

SECTION 820-591 Effect on safe harbour capital amount if group member is foreign-controlled Australian ADI and on-lends section 128F amounts  
820-591(1)
Subsection (2) has effect for the purposes of working out the *safe harbour capital amount of the *head company of a *consolidated group or of a *MEC group for a period that is all or part of an income year, if:

(a) throughout that period, a *member (the ADI subsidiary ) of the group is both a *wholly-owned subsidiary of a *foreign bank and an *ADI; and

(b) the ADI subsidiary has:

(i) issued *debentures or *debt interests covered by section 128F (which exempts interest on the debentures or debt interests from withholding tax) of the Income Tax Assessment Act 1936 ; and

(ii) made proceeds of the debentures or debt interests available to an *Australian permanent establishment of the foreign bank, as loans to the Australian permanent establishment, for use in its Australian business;

unless a choice by the head company under section 820-597 covers the Australian permanent establishment in relation to some or all of that period.

Note:

The effect of such a choice is that the Australian permanent establishment is treated as part of the head company throughout the period covered by the choice. See subsection 820-603(3).

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S 820-591(1) amended by No 21 of 2005.

820-591(2)
The head company ' s *risk-weighted assets at a particular time during that period are reduced by the total amounts of proceeds of the *debentures or *debt interests that are at that time so made available by the ADI subsidiary.

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S 820-591(2) amended by No 21 of 2005.

820-591(3)
To avoid doubt, a choice by the *head company under section 820-597 does not prevent subsection (2) of this section from having effect unless the choice covers the Australian permanent establishment in relation to some or all of that period.

820-591(4)
This section applies only to the 2002-2003 income year and to each of the next 3 income years.

Former s 820-591 inserted by No 117 of 2002. For application provision see Div 820 of the Income Tax (Transitional Provisions) Act 1997 .