Treasury Laws Amendment (Making Multinationals Pay Their Fair Share - Integrity and Transparency) Act 2024 (23 of 2024)

Schedule 2   Thin capitalisation

Part 1   Amendments

Income Tax Assessment Act 1997

91   Subsections 820-609(5) and (6)

Repeal the subsections, substitute:

(5) The *head company or single company is an outward investing financial entity (non-ADI) for the trial period if, apart from this Subdivision:

(a) it would be an *outward investing financial entity (non-ADI) for that period; and

(b) at least one of the *Australian permanent establishments is a *permanent establishment of a *foreign entity that is a *financial entity; and

(c) none of the Australian permanent establishments is a permanent establishment through which a *foreign bank carries on banking *business in Australia.

(6) The *head company or single company is an inward investing financial entity (non-ADI) and an inward investment vehicle (financial) for the trial period if, apart from this Subdivision:

(a) it would be an *inward investing financial entity (non-ADI) and an *inward investment vehicle (financial) for that period; and

(b) it would not be an *outward investing financial entity (non-ADI) for that period; and

(c) at least one of the *Australian permanent establishments is a *permanent establishment of a *foreign entity that is a *financial entity; and

(d) none of the Australian permanent establishments is a permanent establishment through which a *foreign bank carries on banking *business in Australia.