Tax Laws Amendment (2010 Measures No. 3) Act 2010 (90 of 2010)

Schedule 2   Thin capitalisation

Income Tax Assessment Act 1997

6   At the end of section 820-310

Add:

(2) VBIF is the value of business in force at the time of acquisition of the relevant subsidiary (within the meaning of paragraph 5.3 of *accounting standard AASB 1038, as issued on 17 November 1998) of the entity.

(3) *VBIF is taken to be nil at all times unless the value of VBIF at the time of acquisition of the relevant subsidiary was worked out by an *actuary according to Australian actuarial practice.