Taxation Laws Amendment Act (No. 5) 2003 (142 of 2003)

Schedule 1   Thin Capitalisation: amendments taking effect on 1 July 2001

Part 5   Arrangements for borrowing securities

Income Tax Assessment Act 1997

26   Subsection 995-1(1)

Insert:

borrowed securities amount of an entity at a particular time means the total of the liabilities of the entity, to the extent that they meet these conditions:

(a) the value of the liability at that time is worked out by reference to the value at that time of securities that the entity has short sold;

(b) as at that time, the entity has settled the sale using securities it acquired under one or more of these *arrangements:

(i) a reciprocal purchase agreement (otherwise known as a repurchase agreement);

(ii) a sell-buyback arrangement;

(iii) a securities loan arrangement.