Income Tax Assessment Act 1997
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View history noteChapter 4 inserted by No 162 of 2001.
Part 4-5 inserted by No 162 of 2001.
Division 820 inserted by No 162 of 2001.
Subdivision 820-D inserted by No 162 of 2001.
SECTION 820-325 820-325 Amount of debt deduction disallowed
The amount of *debt deduction disallowed under subsection 820-300(1) is worked out using the following formula:
| Debt deduction × |
Capital shortfall
Average debt |
where:
average debt
means the average value, for the income year, of all the *debt capital of the entity that gives rise to *debt deductions of the entity for that or any other income year (other than any debt capital that is attributable to any of the entity
'
s *overseas permanent establishments).
capital shortfall
means the amount by which the *adjusted average equity capital of the entity for that year (see subsection
820-300(3)
) is less than the entity
'
s *minimum capital amount for that year.
debt deduction
means each *debt deduction covered by subsection
820-300(1)
.
Note:
The disallowed amount also does not form part of the cost base of a CGT asset. See section 110-54 .
S 820-325 amended by No 142 of 2003 and inserted by No 162 of 2001.
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