Taxation Laws Amendment Act (No. 5) 2003 (142 of 2003)

Schedule 2   Thin Capitalisation: amendments taking effect on 1 July 2002

Part 3   Equity interests excluded in working out safe harbour debt amount

Income Tax Assessment Act 1997

28   After subsection 820-946(2)

Insert:

(2A) An *equity interest in the entity is an excluded equity interest at a particular time during the relevant period if, and only if:

(a) if subsection (1) does not apply to the holder of the interest for all or part of the relevant period:

(i) the entity is an *associate of the holder; and

(ii) at that time, the interest has been *on issue for a period of less than 180 days; or

(b) if subsection (1) applies to the holder for all or part of the relevant period:

(i) the entity is an associate of the holder; and

(ii) at that time, the interest has been on issue for a period of less than 180 days; and

(iii) the interest is covered by subsection (3) at that time.