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 820-55   Meaning of entity EBITDA and GR group EBITDA  

820-55(1)    
The entity EBITDA of an entity, for a period, is the sum of the following for the entity for the period:

(a)    the entity ' s net profit (disregarding tax expenses);

(b)    the entity ' s * adjusted net third party interest expense;

(c)    the entity ' s depreciation and amortisation expenses.

820-55(2)    
The GR group EBITDA , for a period, of a * GR group for the period, is the sum of the following:

(a)    the GR group ' s net profit (disregarding tax expenses);

(b)    the GR group ' s * adjusted net third party interest expense;

(c)    the GR group ' s depreciation and amortisation expenses;

as disclosed in:

(d)    if paragraph 820-53(2)(a) applies - the * audited consolidated financial statements for the * GR group parent for the period for the GR group; or

(e)    if paragraph 820-53(2)(b) applies - the * global financial statements for the GR group parent for the period for the GR group.

820-55(3)    
For the purposes of subsection (2) , in working out the * GR group ' s * GR group EBITDA for the period, if a * GR group member for the period of the GR group has an * entity EBITDA for the period of less than zero, disregard that entity EBITDA.

820-55(4)    
To avoid doubt, for the purposes of this section, an entity ' s, or a * GR group ' s, net profit (disregarding tax expenses) can be a negative amount.