Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_1
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 1
Character Range: 2256–4196

1  Chapter 4
Repeal the Chapter, substitute:

Chapter 4—International aspects of income tax

Part 4‑5—General

[The next Division is Division 820.]

Division 820—Thin capitalisation rules

Table of Subdivisions

 Guide to Division 820
820‑A Preliminary
820‑B Thin capitalisation rules for outward investing entities (non‑ADI)
820‑C Thin capitalisation rules for inward investing entities (non‑ADI)
820‑D Thin capitalisation rules for outward investing entities (ADI)
820‑E Thin capitalisation rules for inward investing entities (ADI)
820‑F How this Division applies to resident TC groups
820‑G Calculating the average values
820‑H Control of entities
820‑I Associate entities
820‑J Equity interests in trusts and partnerships
820‑K Zero‑capital amounts
820‑L Record keeping requirements

Guide to Division 820

820‑1  What this Division is about

      This Division applies to foreign controlled Australian entities, Australian entities that operate internationally and foreign entities that operate in Australia.
      Financing expenses that an entity can otherwise deduct from its assessable income may be disallowed under this Division in the following circumstances:
         • for an entity that is not an authorised deposit‑taking institution for the purposes of the Banking Act 1959 (an ADI)—the entity's debt exceeds the prescribed level (and the entity is therefore "thinly capitalised");
         • for an entity that is an ADI—the entity's capital is less than the prescribed level (and the entity is therefore "thinly capitalised").

Table of sections

820‑5 Does this Division apply to an entity?
820‑10 Map of Division

820‑5  Does this Division apply to an entity?

  The following diagram shows you how to work out whether this Division applies to an entity.

820‑10  Map of Division

  The following table sets out a map of this Division.

Map of Division
Item             This Subdivision:           sets out: