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

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

Part 4   Adjusted average equity capital for grouping purposes

Income Tax Assessment Act 1997

40   Paragraphs 820-613(3)(a) and (b)

Repeal the paragraphs, substitute:

(a) in the case of a choice under section 820-597:

(i) the amounts worked out under the table in subsection 820-589(3) for that day for each entity that is a *member of the group on that day (except so much of those amounts as is attributable to any of the *overseas permanent establishments of such entities); minus

(ii) the total of the *controlled foreign equity, at the end of that day, of each such entity (except so much of that total as is attributable to any of the overseas permanent establishments of such entities); and

(b) in the case of a choice under section 820-599:

(i) the amount worked out under the table in subsection 820-589(3) for that day for the single company (except so much of that total as is attributable to any of the single company's overseas permanent establishments); minus

(ii) the single company's controlled foreign equity, at the end of that day (except so much of it as is attributable to any of the single company's overseas permanent establishments); and