Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 2/2)
Character Range: 7107143–7108805

are $2 million or less, see section 820‑35.
 (1) This subsection disallows:
 (a) if paragraph (1A)(b)(i) applies—all or part of the entity's *debt deductions for the income year; or
 (b) if paragraph (1A)(b)(ii) applies—all or a part of each debt deduction of the entity for the income year.
Note 1: To work out the amount to be disallowed, see section 820‑220.
Note 2: For the rules that apply to an entity that is an outward investing financial entity (non‑ADI) as well as an inward investing financial entity (non‑ADI), see Subdivision 820‑B.
Note 3: For the rules that apply to an entity that is an inward investing financial entity (non‑ADI) for only a part of an income year, see section 820‑225 in conjunction with subsection (2) of this section.
Note 4: To calculate an average value for the purposes of this Division, see Subdivision 820‑G.
Note 5: A consolidated group or MEC group may be an inward investing financial entity (non‑ADI) to which this Subdivision applies: see Subdivisions 820‑FA and 820‑FB.

Inward investing financial entity (non‑ADI)
 (2) The entity is an inward investing financial entity (non‑ADI) for a period that is all or a part of an income year if, and only if, it is:
 (b) an *inward investment vehicle (financial) for that period (as set out in item 1 of the following table); or
 (d) an *inward investor (financial) for that period (as set out in item 2 of that table).

Inward investing financial entity (non‑ADI)
Item                                         If the entity is a:                                                                                and the entity:                                the entity is an: