Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-H - Control of entities  

Thin capitalisation control interest

SECTION 820-815   General rule about thin capitalisation control interest in a company, trust or partnership  

Meaning of TC control interest

820-815(1)    
The thin capitalisation control interest (or TC control interest ) that an entity holds in a company, trust or partnership at a particular time is the total of the following interests:

(a) the *TC direct control interest (if any) held by the entity in the company, trust or partnership at that time;

(b) the *TC indirect control interest (if any) held by the entity in the company, trust or partnership at that time;

(c) the TC direct control interests (if any) held by the entity ' s *associate entities in the company, trust or partnership at that time;

(d) the TC indirect control interests (if any) held by the entity ' s associate entities in the company, trust or partnership at that time.

This section has effect subject to sections 820-820 to 820-835 (which set out special rules to avoid double counting).

Note:

For the rules about a TC direct control interest, see sections 820-855 to 820-865 . For the rules about a TC indirect control interest, see sections 820-870 to 820-875 .

820-815(2)    

This section does not apply to an *associate entity of the entity if:

(a) the associate entity is a *foreign entity and the associate entity is such an associate entity only because of subsection 820-905(3A) ; or

(b) the associate entity is such an associate entity only because of subsection 820-905(3B) .