Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-EAA - Debt deduction limitation rules for debt deduction creation (all relevant entities)  

Operative provisions

SECTION 820-423B   Amount of debt deduction disallowed  

Acquisition of CGT asset, or legal or equitable obligation

820-423B(1)    
If the condition in subsection 820-423A(2) is met, the amount of the * debt deduction disallowed under subsection 820-423A(1) is the amount of the debt deduction, to the extent that the relevant entity mentioned in subsection 820-423A(2) incurred it in relation to any of the following:

(a)    the acquisition mentioned in subparagraph 820-423A(2)(d)(i) ;

(b)    the holding mentioned in subparagraph 820-423A(2)(d)(ii) .

Financial arrangements involving associate pairs

820-423B(2)    
If the conditions in subsection 820-423A(5) are met, then under subsection 820-423A(1) the *debt deduction is disallowed to the same extent as the extent to which the payer mentioned in paragraph 820-423A(5)(a) uses the *financial arrangement in a manner that satisfies paragraph 820-423A(5)(b) .