Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

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Chapter 4 inserted by No 162 of 2001.

PART 4-5 - GENERAL  

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Part 4-5 inserted by No 162 of 2001.

Division 820 - Thin capitalisation rules  

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Division 820 inserted by No 162 of 2001.

Subdivision 820-A - Preliminary  

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Subdivision 820-A inserted by No 162 of 2001.

SECTION 820-30  

820-30   Object of Division  

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The Object of this Division is to ensure that the following entities do not reduce their tax liabilities by using an excessive amount of *debt deductions, in financing their Australian operations:

(a)    *Australian entities that operate internationally;

(b)    Australian entities that are foreign controlled;

(c)    *foreign entities that operate in Australia.

Note:

This Division applies in relation to debt deductions of an entity as reduced, if required, in accordance with Division 815 (about cross-border transfer pricing).

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S 820-30 amended by No 23 of 2024, s 3 and Sch 2 item 15, by substituting " *debt deductions, in financing their Australian operations " for " *debt capital to finance their Australian operations " , effective 1 July 2024. For application provisions, see note under s 705-60 .

S 820-30 amended by No 101 of 2013, s 3 and Sch 2 item 34, by substituting " Division 815 " for " Subdivision 815-A " in the note, applicable: (a) in respect of tax other than withholding tax - in relation to income years starting on or after the date mentioned in subsection 815-15(2) of the Income Tax (Transitional Provisions) Act 1997 , as inserted; and (b) in respect of withholding tax - in relation to income derived, or taken to be derived, in income years starting on or after that date.

S 820-30 amended by No 115 of 2012, s 3 and Sch 1 item 7, by inserting the note at the end, effective 8 September 2012.

S 820-30 inserted by No 162 of 2001.

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