Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-AA - Thin capitalisation rules for general class investors  

Operative provisions

SECTION 820-49   Meaning of obligor group etc.  

820-49(1)    
Subsection (2) applies if:

(a)    an entity (the borrower ) has issued a * debt interest to another entity (the creditor ); and

(b)    the creditor has recourse for payment of the debt to which the debt interest relates to assets of one or more other entities (each of which is an obligor entity ).

820-49(2)    
Each obligor entity and the borrower is a member of an obligor group in relation to the * debt interest.

820-49(3)    
For the purposes of paragraph (1)(b) , disregard assets that are *membership interests in the borrower.