Document ID: chunk:federal_register_of_legislation:C2024A00023:clause:2_76:p11
Version: federal_register_of_legislation:C2024A00023
Segment Type: clause
Provision Reference: sch 2 cl 76 (pt 11/12)
Character Range: 96880–99670

conduit borrower (if any) are *Australian entities (see section 820‑427E); and
 (f) it is not the case that subparagraph 820‑46(1)(b)(i) or (ii) applies (fixed ratio test or group ratio test applies) to the conduit financer, the borrower or any conduit borrowers;
then the relevant debt interest satisfies the conditions in this subsection in relation to the income year.
 (2) For the purposes of paragraph (1)(d):
 (a) disregard the terms of a *debt interest that is:
 (i) a relevant debt interest; or
 (ii) the ultimate debt interest;
  to the extent that those terms relate to the amount of the debt to which the debt interest relates; and
 (b) disregard the terms (if any) of the ultimate debt interest that have the effect of allowing (whether directly, or indirectly through one or more interposed borrowers) the recovery of reasonable administrative costs that relate directly to the ultimate debt interest; and
 (c) disregard the terms (if any) of a relevant debt interest issued to the conduit financer that have the effect of allowing (whether directly, or indirectly through one or more interposed borrowers) the recovery of reasonable administrative costs of the conduit financer that relate directly to the relevant debt interest; and
 (d) disregard the terms (if any) of a relevant debt interest, to the extent that those terms have the effect of allowing (whether directly, or indirectly through one or more interposed borrowers) the recovery of costs of the conduit financer that:
 (i) are a *debt deduction for the income year of the conduit financer; and
 (ii) are a debt deduction that is treated as being attributable to the ultimate debt interest under subsection 820‑427A(2) because it is directly associated with hedging or managing the interest rate risk in respect of the ultimate debt interest; and
 (e) disregard the terms (if any) of a relevant debt interest, to the extent that those terms have the effect of allowing (whether directly, or indirectly through one or more interposed borrowers) the recovery of costs of a borrower that:
 (i) are a debt deduction for the income year of the borrower; and
 (ii) are a debt deduction that is treated as being attributable to another debt interest under subsection 820‑427A(2) because it is directly associated with hedging or managing the interest rate risk in respect of that other debt interest.

820‑427D  Modified meaning of associate entity
 (1) For the purposes of this Subdivision, in determining whether an entity is an associate entity of another entity:
 (a) treat the references in paragraphs 820‑905(1)(a) and 820‑905(2A)(a) to "an *associate interest of 50% or more" as instead being:
 (i) for the purposes of paragraph 820‑427A(5)(b)—a reference to "a *TC control interest of 50% or more"; or
 (ii) for