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

Schedule 3   Thin Capitalisation: amendments taking effect on 1 July 2003

Part 1   Definition of equity capital and related concepts

Income Tax Assessment Act 1997

9   Subsection 820-615(2)

Repeal the subsection, substitute:

Average equity capital

(2) The average equity capital of the *head company or single company for the test period is:

(a) the average value, for that period, of all the *ADI equity capital of the company; plus

(b) the average value, for that period, of the amount worked out under subsection 820-613(3).

Note 1: In the case of a choice under section 820-599, paragraph 820-603(4)(b) treats the single company and the relevant Australian permanent establishments as a consolidated group.

Note 2: To calculate an average value for the purposes of this Division, see Subdivision 820-G.