Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_3:p3
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 3/26)
Character Range: 106334–108938

bank at no time during the income year; and
 (c) without limiting paragraph (a) or (b), each deduction that:
 (i) is a *debt deduction of the foreign bank for the income year; and
 (ii) is attributable to the Australian permanent establishment;
  were a debt deduction of the group (even if it was incurred at a time when the Australian permanent establishment was not in the group);
but with the modifications set out in sections 820‑550 to 820‑575.

Note: To work out the times during the income year when the Australian permanent establishment was in the group, see section 820‑530.

 (5) For the purposes of this Division (as applying because of this Subdivision), this Act (except this Division) applies as if the matters referred to in subsections (3) and (4) of this section were the case.

Note: This means that the group is treated for the purposes of this Division as if it had debt deductions for the income year, based on the actual costs incurred by the entities and Australian permanent establishments that are treated as divisions or parts under subsections (3) and (4).

820‑465  Effect on entities in group if debt deduction disallowed

  If:
 (a) this Division (as applying because of this Subdivision) disallows all or part of a *debt deduction of the group for an income year; and
 (b) apart from this Division, the deduction would be a deduction of an entity for that income year;
this subsection disallows the deduction of that entity to the same extent.

Note: This section does not disallow a debt deduction to the extent that, at the time when the entity incurred the cost, the amount of the cost was paid or owed to another entity that was in the group at that time.

This is because the cost would not be a deduction for the group, since both entities are treated as divisions or parts of the group (see subsection 820‑460(3)).

820‑470  Values to be based on what would be in consolidated accounts for group

 (1) For the purposes of this Division as applying because of this Subdivision to a *resident TC group for an income year, the value or amount of a particular matter as at a particular time is to be worked out, so far as practicable, on the basis of the information that would be contained in a set of consolidated accounts:
 (a) prepared, in accordance with the *accounting standard on consolidated accounts, as at that time; and
 (b) covering the entities of which the group consisted at that time.

Note: This subsection does not depend on whether such a set of consolidated accounts was prepared, or had to be prepared, for other purposes.

 (2) To avoid doubt,