Document ID: chunk:federal_register_of_legislation:C2024A00023:clause:2_29:p4
Version: federal_register_of_legislation:C2024A00023
Segment Type: clause
Provision Reference: sch 2 cl 29 (pt 4/15)
Character Range: 25178–27902

under subsection 820‑46(5) in relation to a different obligor group); and
 (ii) is required to lodge an *income tax return for the income year; and
 (c) the first entity:
 (i) is an *associate entity of the entity mentioned in paragraph (b) of this subsection; and
 (ii) is required to lodge an *income tax return for the income year.
 (2) For the purposes of subparagraph (1)(c)(i), in determining whether an entity is an associate entity of another entity:
 (aa) disregard the requirement in subsections 820‑905(1) and (2A) that the entity is an *associate of the other entity, unless only paragraph 820‑905(1)(b) applies; and
 (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 a reference to "a *TC control interest of 20% or more"; and
 (b) treat subsection 820‑860(3) as applying for the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection); and
 (c) treat the purposes mentioned in subparagraphs 820‑870(1)(b)(i) and (ii) as including the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection).
 (3) For the purposes of subsection 820‑46(5), this section also applies to the entity mentioned in that subsection in relation to an income year if:
 (a) the entity has entered into a *cross staple arrangement with one or more other entities; and
 (b) one or more of those other entities has made a choice under subsection 820‑46(4) in relation to that income year (including a choice that is taken to be made under subsection 820‑46(5)).

820‑49  Meaning of obligor group etc.
 (1) Subsection (2) applies if:
 (a) an entity (the borrower) has issued a *debt interest to another entity (the creditor); and
 (b) the creditor has recourse for payment of the debt to which the debt interest relates to assets of one or more other entities (each of which is an obligor entity).
 (2) Each obligor entity and the borrower is a member of an obligor group in relation to the *debt interest.
 (3) For the purposes of paragraph (1)(b), disregard assets that are *membership interests in the borrower.

820‑50  Amount of debt deduction disallowed
 (1) The amount (the total disallowed amount) disallowed under subsection 820‑46(1) of the *debt deductions of an entity for an income year is:
 (a) if the entity has not made a choice under subsection 820‑46(3) or (4) in relation to the income year (fixed ratio test applies)—the amount by which the entity's *net debt deductions for the income year exceed the entity's *fixed ratio earnings limit for the income year (see section 820‑51);