Document ID: chunk:federal_register_of_legislation:C2024A00023:clause:2_76:p4
Version: federal_register_of_legislation:C2024A00023
Segment Type: clause
Provision Reference: sch 2 cl 76 (pt 4/12)
Character Range: 79096–81918

in paragraph (5)(a); and
 (b) a recipient may be the entity with whom the payer enters into or has the financial arrangement, or another entity.
 (7) For the purposes of subparagraph (6)(a)(i), in determining whether a payment or distribution is made indirectly through one or more interposed entities:
 (a) it is sufficient if payments exist between each interposed entity; and
 (b) it is not necessary to demonstrate that each payment in a series of payments funds the next payment, or is made after the previous payment.

820‑423AA  Exceptions for acquisition of certain CGT assets

Acquisition of new membership interests in entities
 (1) For the purposes of paragraph 820‑423A(2)(f), the acquisition of a *CGT asset is covered by this section if:
 (a) the CGT asset is a *membership interest in:
 (i) an *Australian entity; or
 (ii) a *foreign entity that is a company; and
 (b) the membership interest has not previously been held by any entity.

Acquisition of certain new depreciating assets
 (2) For the purposes of paragraph 820‑423A(2)(f), the acquisition of a *CGT asset is covered by this section if all of the following conditions are satisfied:
 (a) the CGT asset is a *depreciating asset other than an intangible asset;
 (b) an entity (the acquirer) holds the CGT asset immediately after its acquisition;
 (c) at the time of the acquisition, it is reasonable to conclude that the acquirer expects to use the CGT asset:
 (i) for a *taxable purpose; and
 (ii) within Australia; and
 (iii) within 12 months;
 (d) at the time of the acquisition, the CGT asset has not been *installed ready for use, or previously used for a taxable purpose, by any of the following:
 (i) the acquirer;
 (ii) an associate disposer of the acquirer;
 (iii) an *associate pair of the acquirer.

Acquisition of certain debt interests
 (3) For the purposes of paragraph 820‑423A(2)(f), the acquisition of a *CGT asset is covered by this section if all of the following conditions are satisfied:
 (a) the CGT asset is a *debt interest;
 (b) an entity (the acquirer) holds the debt interest immediately after its acquisition;
 (c) the debt interest is issued by an *associate pair of the acquirer;
 (d) the debt interest has not previously been held by any entity.

820‑423B  Amount of debt deduction disallowed

Acquisition of CGT asset, or legal or equitable obligation
 (1) If the condition in subsection 820‑423A(2) is met, the amount of the *debt deduction disallowed under subsection 820‑423A(1) is the amount of the debt deduction, to the extent that the relevant entity mentioned in subsection 820‑423A(2) incurred it in relation to any of the following:
 (a) the acquisition mentioned in subparagraph 820‑423A(2)(d)(i);
 (b) the holding mentioned in subparagraph 820‑423A(2)(d)(ii).

Financial arrangements involving associate