INCOME TAX ASSESSMENT ACT 1997 (ARCHIVE)

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-F - Thin capitalisation rules for resident TC groups  

How to construct a resident TC group for an income year

SECTION 820-500 (ARCHIVE)   Choice to be made by top entity of a maximum TC group  

820-500(1)    
The *top entity of a *maximum TC group for an income year may make one only of the 3 choices set out in sections 820-505 , 820-510 and 820-520 .

820-500(2)    
If there are 2 or more *top entities of the maximum TC group, only one of them can make the choice.

820-500(3)    
A maximum TC group for an income year consists of:

(a) a company that, at the end of that income year, is a *100% subsidiary of no other company; and

(b) each 100% subsidiary of that company at the end of that income year.

820-500(4)    
A top entity of a *maximum TC group for an income year is a company in the group of which each company in the group (other than that company) that, at the end of that income year:

(a) is an *Australian entity; and

(b) is not a *prescribed dual resident;

is a 100% subsidiary.