Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 820-330 Application to part year periods 820-330(1)
This subsection disallows all or a part of each *debt deduction of an entity for an income year that is an amount incurred by the entity during a period that is a part of that year (to the extent that it is not attributable to an *overseas permanent establishment of the entity) if, for that period: (a) the entity is an *outward investing entity (ADI); and (b) the *adjusted average equity capital of the entity is less than the entity ' s *minimum capital amount.
Note:
To determine whether an entity is an outward investing entity (ADI) for that period, see subsection 820-300(2) .
820-330(2)
The entity ' s adjusted average equity capital for that period is: (a) the average value, for that period, of all the ADI equity capital of the entity (other than ADI equity capital attributable to any of its *overseas permanent establishments); minus (b) the average value, for that period, of all the *controlled foreign entity equity of the entity (other than controlled foreign entity equity attributable to any of its overseas permanent establishments).
820-330(3)
For the purposes of determining: (a) the entity ' s *minimum capital amount for that period; and (b) the amount of each *debt deduction to be disallowed;
sections 820-305 to 820-325 apply in relation to that entity and that period with the modifications set out in the following table:
| Modifications of sections 820-305 to 820-325 | ||
| Item | Provisions | Modifications |
| 1 | Sections 820-305 to 820-325 | A reference to an income year is taken to be a reference to that period |
| 2 | Section 820-325 | A reference to subsection 820-300(1) is taken to be a reference to subsection (1) of this section |
| 3 | Section 820-325 | adjusted average equity capital has the meaning given by subsection (2) of this section |
| average debt is taken to be the average value, for that period, of all the *debt capital of the entity that gives rise to *debt deductions of the entity for that or any other income year, to the extent that the debt capital is not attributable to any of the entity ' s *overseas permanent establishments |
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
