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  

How to construct a resident TC group for an income year

SECTION 820-505 (ARCHIVE)   Single group  

820-505(1)    
The first choice can be made only if the income year ends on the same day for all companies ( eligible companies ) in the *maximum TC group that meet the conditions in subsection (3) at the end of the income year.

Note:

If this condition is not met, those eligible companies for which the income year does end on the same day may be able to form one or more resident TC groups under section 820-510 .

820-505(2)    
The choice is to treat as a single resident TC group for the income year:

(a) all the eligible companies; and

(b) each partnership and trust that section 820-515 includes in the resident TC group; and

(c) each *Australian permanent establishment of a *foreign bank that section 820-515 includes in the resident TC group.

820-505(3)    
The conditions for each company are that it:

(a) is an *Australian entity; and

(b) is not a *prescribed dual resident.