Document ID: chunk:federal_register_of_legislation:C2024A00023:clause:2_29:p15
Version: federal_register_of_legislation:C2024A00023
Segment Type: clause
Provision Reference: sch 2 cl 29 (pt 15/15)
Character Range: 51802–53371

have not been applied under section 820‑56).

           Step 2. For each controlled entity:

                (a) work out the controlling entity's *TC direct control interest for each day in the income year; and
                (b) for each day on which the amount was 50% or greater, add the amounts; and
                (c) divide the result of paragraph (b) by the number of days in the income year during which the controlled entity was in existence. Express the result as a percentage.

           Step 3. For each controlled entity, multiply the result of step 1 by the percentage worked out under step 2. If the amount worked out under step 1 for a controlled entity is nil, the result for that controlled entity under this step will be nil.
           Step 4. Add up the amounts worked out under step 3.
           Step 5. Divide the result of step 4 by 0.3. The result of this step is the excess tax EBITDA amount.

Modification of TC direct control interest—companies
 (4) For the purposes of this section, in working out whether the controlling entity holds a *TC direct control interest in a company, apply subsection 820‑855(2) as if it instead included the modifications of Part X of the Income Tax Assessment Act 1936 set out in the following table.

Modifications of provisions in Part X of the Income Tax Assessment Act 1936
Item                                                                         Provisions                                                                                                                           Modifications