New International Tax Arrangements (Foreign-owned Branches and Other Measures) Act 2005 (64 of 2005)

Schedule 3   Australian permanent establishments of foreign financial entities

Part 3   Thin capitalisation

Income Tax Assessment Act 1997

15   Section 820-595

Repeal the section, substitute:

820-595 What this Subdivision is about

If:

(a) the head company of a consolidated group or MEC group; or

(b) an Australian company that cannot consolidate;

is a member of the same wholly-owned group as a foreign bank or foreign financial entity, the company can choose to treat as part of itself the Australian branches of the foreign bank or foreign financial entity, affecting how the rest of this Division applies.