Taxation Laws Amendment Act (No. 5) 2003 (142 of 2003)

Schedule 3   Thin Capitalisation: amendments taking effect on 1 July 2003

Part 1   Definition of equity capital and related concepts

Income Tax Assessment Act 1997

14   Subsection 995-1(1) (definition of worldwide equity )

Repeal the definition, substitute:

worldwide equity , of an entity and at a particular time, means the total of the following amounts:

(a) all the *equity capital of the entity as at that time, but worked out disregarding *equity interests in the entity held at that time by *Australian controlled foreign entities (the controlled entities ) of which the entity is an *Australian controller at that time;

(b) all the equity capital of the controlled entities as at that time, but worked out disregarding equity interests in the controlled entities held at that time by:

(i) the entity; or

(ii) other controlled entities.