Document ID: chunk:federal_register_of_legislation:C2013A00101:clause:2_2:p3
Version: federal_register_of_legislation:C2013A00101
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 3/8)
Character Range: 21384–24145

Administrations, as approved by the Council of the Organisation for Economic Cooperation and Development and last amended on 22 July 2010;
 (b) a document, or part of a document, prescribed by the regulations for the purposes of this paragraph.
 (3) However, the document mentioned in paragraph (2)(a) is not covered by this section if the regulations so prescribe.
 (4) Regulations made for the purposes of paragraph (2)(b) or subsection (3) may prescribe different documents or parts of documents for different circumstances.

815‑140  Modification for thin capitalisation
 (1) This section modifies the way an entity to which section 815‑115 applies works out its taxable income, or its loss of a particular *sort, for an income year, if:
 (a) Division 820 (about thin capitalisation) applies to the entity for the income year; and
 (b) the *arm's length conditions affect costs that are *debt deductions of the entity for the income year.
 (2) If working out what those costs would be if the *arm's length conditions had operated involves applying a rate to a *debt interest:
 (a) work out the rate as if the arm's length conditions had operated; but
 (b) apply the rate to the debt interest the entity actually issued.
Note: Division 820 may apply to reduce or further reduce debt deductions.

815‑145  Consequential adjustments
 (1) The Commissioner may make a determination under subsection (2) in relation to an entity (the disadvantaged entity) if:
 (a) *arm's length conditions are taken by section 815‑115 to operate; and
 (b) the Commissioner considers that, if the arm's length conditions, instead of the actual conditions, had operated:
 (i) the amount of the disadvantaged entity's taxable income for an income year might have been expected to be less than its actual amount; or
 (ii) the amount of the disadvantaged entity's loss of a particular *sort for an income year might have been expected to be greater than its actual amount; or
 (iii) the amount of the disadvantaged entity's *tax offsets for an income year might have been expected to be greater than their actual amount; or
 (iv) an amount of *withholding tax payable in respect of interest or royalties by the disadvantaged entity might have been expected to be less than its actual amount; and
 (c) the Commissioner considers that it is fair and reasonable that the actual amount mentioned in subparagraph (b)(i), (ii), (iii) or (iv) (as the case requires) be adjusted accordingly.
 (2) For the purpose of adjusting an amount as mentioned in paragraph (1)(c), the Commissioner may make a determination stating the amount that is (and has been at all times) the amount of the disadvantaged entity's:
 (a) taxable income for the income year; or
 (b) loss of a particular *sort for the