Document ID: chunk:federal_register_of_legislation:C2025C00029:section:9:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 9 (pt 16/19)
Character Range: 7066840–7069528

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).

820‑55  Meaning of entity EBITDA and GR group EBITDA
 (1) The entity EBITDA of an entity, for a period, is the sum of the following for the entity for the period:
 (a) the entity's net profit (disregarding tax expenses);
 (b) the entity's *adjusted net third party interest expense;
 (c) the entity's depreciation and amortisation expenses.
 (2) The GR group EBITDA, for a period, of a *GR group for the period, is the sum of the following:
 (a) the GR group's net profit (disregarding tax expenses);
 (b) the GR group's *adjusted net third party interest expense;
 (c) the GR group's depreciation and amortisation expenses;
as disclosed in:
 (d) if paragraph 820‑53(2)(a) applies—the *audited consolidated financial statements for the *GR group parent for the period for the GR group; or
 (e) if paragraph 820‑53(2)(b) applies—the *global financial statements for the GR group parent for the period for the GR group.
 (3) For the purposes of subsection (2), in working out the *GR group's *GR group EBITDA for the period, if a *GR group member for the period of the GR group has an *entity EBITDA for the period of less than zero, disregard that entity EBITDA.
 (4) To avoid doubt, for the purposes of this section, an entity's, or a *GR group's, net profit (disregarding tax expenses) can be a negative amount.

820‑56  Special deduction for previously FRT disallowed amounts—fixed ratio test
 (1) An entity can deduct the amount worked out under subsection (2) from its assessable income for the income year if:
 (a) the entity has not made a choice under subsection 820‑46(3) or (4) in relation to the income year (fixed ratio test applies); and
 (b) the entity's *fixed ratio earnings limit for the income year exceeds the sum of the entity's *net debt deductions for the income year.
Note: The entity's net debt deductions for the income year can be a negative amount.
 (2) Work out the amount of the deduction as follows:
 (a) first, work out the amount of the excess mentioned in paragraph (1)(b);
 (b) next, apply against that excess each of the entity's *FRT disallowed amounts for the previous 15 income years (to the extent that they have not already been applied under this paragraph in respect of any of those previous income years).
The amount of the deduction is the total amount applied under paragraph (b).