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

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

Part 2   Exemption of certain special purpose entities

Income Tax Assessment Act 1997

3   After subsection 820-550

Insert:

820-552 Treatment of exempt special purpose entities

(1) The fact that an entity meets the conditions in subsection 820-39(3) (about insolvency-remote special purpose entities established to manage economic risk) throughout a period ending at the end of an income year does not prevent the entity from being in a *resident TC group for that income year.

(2) However, the entity is treated as not being in that group for the purposes of sections 820-550, 820-555, 820-565 and 820-575.

(3) While an entity meets the conditions in subsection 820-39(3), it is treated for the purposes of this Division (except this section) as not being in a *resident TC group that it is in.

Note: This section has the effect that the circumstances of the entity are not taken into account in applying this Division to the resident TC group. The entity itself is exempt from this Division because of section 820-39.