Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-FA - How the thin capitalisation rules apply to consolidated groups and MEC groups  

Operative provisions

SECTION 820-583   Classification of head company  


General class investor

820-583(1)    


The * head company of a * consolidated group or of a * MEC group is a general class investor for a period that is all or part of an income year if:

(a)    for that period, the head company satisfies the requirement in subsection 820-46(2) ; and

(b)    no * member of the group is a * financial entity or * ADI at any time during that period.


820-583(2)    
(Repealed by No 23 of 2024)



Outward investing financial entity (non-ADI)

820-583(3)    


The *head company of a *consolidated group or of a *MEC group is an outward investing financial entity (non-ADI) for a period that is all or part of an income year if:

(a)    

for that period, the head company satisfies the condition in the second column of item 1 or 2 of the table in subsection 820-85(2) ; and

(b)    throughout that period, there is at least one *member of the group that is a *financial entity; and

(c)    no *member of the group is an *ADI at any time during that period.



Inward investing financial entity (non-ADI)

820-583(4)    


The * head company of a * consolidated group or of a * MEC group is an inward investing financial entity (non-ADI) for a period that is all or part of an income year if, and only if, it is an * inward investment vehicle (financial) for that period (because of subsection (6) ).

820-583(5)    
(Repealed by No 23 of 2024)



Inward investment vehicle (financial)

820-583(6)    


The *head company of a *consolidated group or of a *MEC group is an inward investment vehicle (financial) for a period that is all or part of an income year if:

(a)    throughout that period, the head company is a *foreign controlled Australian entity; and

(b)    throughout that period, there is at least one *member of the group that is a *financial entity; and

(c)    

no member of the group is an *ADI at any time during that period.

Outward investing entity (ADI)

820-583(7)    
The *head company of a *consolidated group or of a *MEC group is an outward investing entity (ADI) for a period that is all or part of an income year if, and only if:

(a)    apart from Part 3-90 (about consolidation of groups) and this Subdivision, at least one *member of the group would be an *outward investing entity (ADI) for that period; or

(b)    

these conditions are met:

(i) at least one member of the group would, apart from that Part and this Subdivision, be an *outward investing financial entity (non-ADI) for that period; and

(ii) at least one member of the group is an *ADI throughout that period.


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