Document ID: chunk:federal_register_of_legislation:C2024A00023:clause:2_29:p14
Version: federal_register_of_legislation:C2024A00023
Segment Type: clause
Provision Reference: sch 2 cl 29 (pt 14/15)
Character Range: 49406–52073

amount of that tax loss in the deduction year.

820‑60  Excess tax EBITDA amount

Scope
 (1) This section applies to an entity (the controlling entity) if:
 (a) the controlling entity is, for a period that is all or part of an income year, one of the following entities:
 (i) a company that is an *Australian entity;
 (ii) a unit trust that is a *resident trust for CGT purposes;
 (iii) a *managed investment trust;
 (iv) a partnership that is an Australian entity; and
 (b) the controlling entity is a *general class investor for all or part of the income year; and
 (c) the controlling entity has not made a choice under subsection 820‑46(3) or (4) in relation to the income year; and
 (d) one or more other entities (each of which is a controlled entity) satisfy the conditions in subsection (2) of this section in relation to the controlling entity for the income year.
 (2) An entity (the test entity) satisfies the conditions in this subsection in relation to the controlling entity for an income year if:
 (a) the controlling entity has a *TC direct control interest of 50% or more in the test entity at any time during the income year; and
 (b) the test entity is, for a period that is all or part of the income year, one of the following entities:
 (i) a company that is an *Australian entity;
 (ii) a unit trust that is a *resident trust for CGT purposes;
 (iii) a *managed investment trust;
 (iv) a partnership that is an Australian entity; and
 (c) the test entity is a *general class investor for all or part of the income year; and
 (d) the test entity has not made a choice under subsection 820‑46(3) or (4) in relation to the income year.

Excess tax EBITDA amount
 (3) The controlling entity's excess tax EBITDA amount for the income year is the amount worked out using the following method statement.

      Method statement
           Step 1. For each controlled entity, work out the amount (if any) by which the *fixed ratio earnings limit of the controlled entity for the income year exceeds the sum of the following:

                (a) the controlled entity's *net debt deductions for the income year (for the purposes of this paragraph, treat a negative amount of net debt deductions as nil);
                (b) the total of the controlled entity's *FRT disallowed amounts for the 15 income years ending immediately before the income year (to the extent those amounts have not been applied under section 820‑56).

           Step 2. For each controlled entity:

                (a) work out the controlling entity's *TC direct control interest for each day in the income year; and
                (b) for each day on which the amount was