Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_4:p4
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 4/6)
Character Range: 81506–84391

(d) except as mentioned in subsection (1), the entity had carried on the Australian business in the same circumstances as what actually existed during that year.

Relevant factors

 (3) On the basis of the factual assumptions set out in subsection (2), the following factors must be taken into account in determining that minimum amount:
 (a) the functions performed, the assets used, and the risks assumed, throughout that year, by:
 (i) the entity; and
 (ii) the entity in relation to the Australian business;
 (b) the credit rating of the entity throughout that year, including the effect of that credit rating on all of the following:
 (i) the entity's ability to borrow in relation to the Australian business;
 (ii) the interest rate at which the entity borrowed in relation to that business;
 (iii) the entity's gross profit margin in relation to that business;
 (c) the capital ratios of the following throughout that year:
 (i) the entity;
 (ii) the entity in relation to the Australian business;
 (iii) each of the entity's *associate entities that engage in commercial activities similar to the Australian business;
 (d) the purposes for which *schemes for *debt capital and for *equity capital had been actually entered into, throughout that year, by:
 (i) the entity; and
 (ii) the entity in relation to the Australian business;
 (e) the profit (within the meaning of the *accounting standards), and the return on capital, whether during that year or at any other time, of:
 (i) the entity; and
 (ii) the entity in relation to the Australian business;
 (f) the commercial practices adopted by independent parties dealing with each other at arm's length in the industry in which the entity carries on the Australian business throughout that year (whether in Australia or in comparable markets elsewhere);
 (g) the way in which the entity financed its business (other than the Australian business) throughout that year;
 (h) the general state of the Australian economy throughout that year;
 (i) any other factors which are specified in the regulations made for the purposes of this section.

Commissioner's power

 (4) If the Commissioner considers an amount worked out by the entity under this section does not appropriately take into account the factual assumptions and the relevant factors, the Commissioner may substitute another amount that the Commissioner considers better reflects those assumptions and factors.

820‑320  Worldwide capital amount

 (1) This section only applies if the entity is not also a *foreign controlled Australian entity throughout the income year.

 (2) The worldwide capital amount is the result of applying the method statement in this subsection.

      Method statement
           Step 1. Work out the average value, for the income year, of all the *risk‑weighted assets of the entity, other than risk‑weighted assets attributable to