Taxation Laws Amendment Act (No. 4) 2002 (53 of 2002)

Schedule 1   Thin capitalisation

Part 1   Amendments

Income Tax Assessment Act 1997

4   Section 820-37 (definition of average Australian assets )

Repeal the definition, substitute:

average Australian assets :

(a) of an *Australian entity - is the average value, for that year, of all the assets of the entity, other than:

(i) any assets attributable to the entity's *overseas permanent establishments; or

(ii) any *debt interests held by the entity, to the extent to which any value of the interests is all or a part of the *controlled foreign entity debt of the entity; or

(iii) any *equity interests or debt interests held by the entity, to the extent to which any value of the interests is all or a part of the *controlled foreign entity equity of the entity; or

(iv) any debt interests that are *issued by *associates of the entity, that are *on issue, and that are held by the entity; or

(v) any equity interests that the entity holds in associates of the entity; and

(b) of a *foreign entity - is the average value, for that year, of all the assets of the entity that are:

(i) located in Australia; or

(ii) attributable to the entity's *Australian permanent establishments; or

(iii) debt interests held by the entity, to the extent to which the interests are covered by subsection (2); or

(iv) equity interests held by the entity, to the extent to which the interests are covered by subsection (3);

other than:

(v) any debt interests that are issued by associates of the entity, that are on issue, and that are held by the entity; or

(vi) any equity interests that the entity holds in associates of the entity.