Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 5/8)
Character Range: 7286522–7289371

*Australian permanent establishments;
 (b) other assets that are held by the controlled entity for the purposes of producing assessable income of the controlled entity.

820‑890  What is controlled foreign entity equity?
 (1) The relevant entity's controlled foreign entity equity at a particular time during the relevant period is the total value of:
 (a) all the *equity interests that the entity holds, at that time, in entities that are controlled entities of the relevant entity at that time; and
 (b) all the *debt interests *on issue and held by the entity at that time that satisfy both of the following:
 (i) the interests were *issued by entities that are controlled entities of the relevant entity at that time;
 (ii) none of the interests gives rise to any cost, at any time, that is covered by paragraph 820‑40(1)(a).
 (2) For the purposes of subsection (1), take into account the value of an *equity interest in, or a *debt interest issued by, a controlled entity of the relevant entity only to the extent that the interest is not attributable to any of the following assets that are held by the controlled entity throughout the relevant period:
 (a) assets attributable to the controlled entity's *Australian permanent establishments;
 (b) other assets that are held by the controlled entity for the purposes of producing assessable income of the controlled entity.

Subdivision 820‑I—Associate entities

Guide to Subdivision 820‑I

820‑900  What this Subdivision is about
      This Subdivision sets out the meaning of various concepts about associate entities for the purposes of this Division.

Table of sections
820‑905 Associate entity
820‑910 Associate entity debt
820‑915 Associate entity equity
820‑920 Associate entity excess amount

820‑905  Associate entity

Meaning of associate entity
 (1) An entity (the first entity) that is not an individual is an associate entity of another entity at a particular time if, at that time, the first entity is an *associate of that other entity and at least one of the following paragraphs applies:
 (a) that other entity holds an *associate interest of 50% or more in the first entity (see subsections (4) to (8));
 (b) the first entity is accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of that other entity in relation to:
 (i) the distribution or retention of the first entity's profits; or
 (ii) the financial policies relating to the first entity's assets, *debt capital or *equity capital;
  whether those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed entities.
However, this subsection does not apply to the first entity in its capacity as the *responsible entity of a *registered scheme