Taxation Laws Amendment Act (No. 4) 2002 (53 of 2002)

Schedule 1   Thin capitalisation

Part 1   Amendments

Income Tax Assessment Act 1997

15   Section 820-115 (definition of average debt )

Repeal the definition, substitute:

average debt means the sum of:

(a) the average value, for the income year, of the entity's *debt capital that is covered by step 1 of the method statement in subsection 820-85(3); and

(b) the average value, for that year, of the entity's *cost-free debt capital that is covered by step 5 of that method statement;

(disregarding any amount that is attributable to the entity's *overseas permanent establishments in working out the average values).