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

Schedule 1   Thin capitalisation

Part 1   Amendments

Income Tax Assessment Act 1997

8   Subsection 820-85(3) (step 5 of the method statement)

Repeal the step, substitute:

Step 5. Add to the result of step 4 the average value, for the relevant year, of the *cost-free debt capital of the entity. The result of this step is the adjusted average debt .