Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-EAB - Third party debt concepts  

Operative provisions

SECTION 820-427D   Modified meaning of associate entity  

820-427D(1)    
For the purposes of this Subdivision, in determining whether an entity is an associate entity of another entity:

(a)    treat the references in paragraphs 820-905(1)(a) and 820-905(2A)(a) to " an * associate interest of 50 % or more " as instead being:

(i) for the purposes of paragraph 820-427A(5)(b) - a reference to " a *TC control interest of 50% or more " ; or

(ii) for the purposes of any other provision in this Subdivision - a reference to " a * TC control interest of 20 % or more " ; and

(aa)    disregard the requirement in subsections 820-905(1) and (2A) that the entity is an *associate of the other entity, unless only paragraph 820-905(1)(b) applies; and

(b)    treat subsection 820-860(3) as applying for the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection); and

(c)    treat the purposes mentioned in subparagraphs 820-870(1)(b)(i) and (ii) as including the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection).

820-427D(2)    
For the purposes of this Subdivision:

(a)    treat an entity (the first entity ) that has entered into a *cross-staple arrangement with another entity as an associate entity of that other entity; and

(b)    if that other entity is itself an associate entity of a conduit financer mentioned in section 820-427C (whether because of another operation of this subsection or otherwise) - treat the first entity as an associate entity of the conduit financer.