INCOME TAX ASSESSMENT ACT 1997 (ARCHIVE)

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-F - Thin capitalisation rules for resident TC groups  

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History

Subdivision 820-F inserted by No 162 of 2001, s 3 and Sch 1 item 1, effective 1 July 2001.

Operative provisions

SECTION 820-465 (ARCHIVE)  

820-465   Effect on entities in group if debt deduction disallowed  
If:

(a) this Division (as applying because of this Subdivision) disallows all or part of a *debt deduction of the group for an income year; and

(b) apart from this Division, the deduction would be a deduction of an entity for that income year;

this subsection disallows the deduction of that entity to the same extent.

Note 1:

This section does not disallow a debt deduction to the extent that, at the time when the entity incurred the cost, the amount of the cost was paid or owed to another entity that was in the group at that time.

This is because the cost would not be a deduction for the group, since both entities are treated as divisions or parts of the group (see subsection 820-460(3) ).

Note 2:

The disallowed amount also does not form part of the cost base of a CGT asset. See section 110-54 .

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History

S 820-465 amended by No 142 of 2003 , s 3 and Sch 2 items 46 and 47, by substituting ``Note 1'' for ``Note'' in the note and inserting Note 2, effective 17 December 2003. The amendment does not apply for the purposes of working out a capital gain made from a CGT event happening before 1 July 2002.

S 820-465 inserted by No 162 of 2001 , s 3 and Sch 1 item 1, effective 1 July 2001.

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