Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:13_3:p2
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 13 cl 3 (pt 2/9)
Character Range: 202789–205584

Australian resident company

Guide to Subdivision 820‑FB

820‑595  What this Subdivision is about

      If the head company of a consolidated group or MEC group is a member of the same wholly‑owned group as a foreign bank, the head company can choose to treat as part of itself the foreign bank's Australian branches.
      If an Australian company that cannot consolidate is a member of the same wholly‑owned group as a foreign bank, the company can choose to treat as part of itself the foreign bank's Australian branches.
      This Subdivision sets out the consequences of the choice for the application of the rest of this Division.
Note: Also, if an Australian company that cannot consolidate is both a wholly‑owned subsidiary of a foreign bank and an ADI, the company's risk‑weighted assets may be reduced by the proceeds of debentures if those proceeds have been on‑lent to an Australian permanent establishment of the foreign bank, and interest on the debentures is exempt from withholding tax because of section 128F of the Income Tax Assessment Act 1936. See section 820‑617.

Table of sections

Choice to group with foreign bank branches

820‑597 Choice by consolidated group or MEC group
820‑599 Choice by single Australian resident company that is not part of a consolidatable group or potential MEC group

Effect of choice

820‑601 Application
820‑603 General
820‑605 Effect on foreign bank if certain debt deductions disallowed
820‑607 Effect on test periods under this Division
820‑609 Effect on classification of head company or single company
820‑611 Values to be based on what would be in consolidated accounts for group
820‑613 How Subdivision 820‑D applies if head company or single company is treated as including foreign bank branches
820‑615 How Subdivision 820‑E applies if head company or single company is treated as including foreign bank branches
820‑617 Effect on safe harbour capital amount if single company is foreign‑controlled Australian ADI and on‑lends section 128F amounts

[This is the end of the Guide.]

Choice to group with foreign bank branches

820‑597  Choice by consolidated group or MEC group

 (1) The *head company of a *consolidated group or *MEC group may choose to have treated as part of itself, for the purposes of this Division, each *Australian permanent establishment through which a *foreign bank carried on its banking business in Australia from time to time during a period (the grouping period) for which the conditions in subsection (2) are satisfied.

 (2) The conditions are:
 (a) the period began on or after 1 July 2002; and
 (b) the period was all or part of an income year of the *head company; and
 (c) the *consolidated group or *MEC group was in existence throughout the period; and
 (d) throughout the period:
 (i)