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 820-423D   Schemes relating to this Subdivision  

820-423D(1)    
Subsection (2) applies if the Commissioner is satisfied that:

(a)    it is reasonable to conclude that one or more entities (each of which is a participant ) entered into or carried out a * scheme for the principal purpose of, or for more than one principal purpose that included the purpose of, achieving any of the following results:

(i) subsection 820-423A(2) does not apply in relation to a * debt deduction;

(ii) subsection 820-423A(5) does not apply in relation to a debt deduction;

(whether or not the debt deduction is a debt deduction of any of the participants and whether or not any of them carried out the scheme or any part of the scheme); and

(b)    the scheme has achieved, or apart from this section would achieve, that purpose.

820-423D(2)    
The Commissioner may determine that this Act has, and is taken always to have had, effect as if:

(a)    subsection 820-423A(2) applies in relation to the * debt deduction; or

(b)    subsection 820-423A(5) applies in relation to the debt deduction.

820-423D(3)    
A determination under subsection (2) has effect accordingly.

820-423D(4)    
This section applies whether or not the scheme has been or is entered into or carried out in Australia or outside Australia, or partly in Australia and partly outside Australia.

820-423D(5)    
A determination under subsection (2) is not a legislative instrument.

820-423D(6)    
An entity who is dissatisfied with a determination under subsection (2) made in relation to the entity may object against the determination in the manner set out in Part IVC of the Taxation Administration Act 1953 .