Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p30
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 30/32)
Character Range: 7267012–7269775

indirect control interest.

Thin capitalisation control interest

820‑815  General rule about thin capitalisation control interest in a company, trust or partnership

Meaning of TC control interest
 (1) The thin capitalisation control interest (or TC control interest) that an entity holds in a company, trust or partnership at a particular time is the total of the following interests:
 (a) the *TC direct control interest (if any) held by the entity in the company, trust or partnership at that time;
 (b) the *TC indirect control interest (if any) held by the entity in the company, trust or partnership at that time;
 (c) the TC direct control interests (if any) held by the entity's *associate entities in the company, trust or partnership at that time;
 (d) the TC indirect control interests (if any) held by the entity's associate entities in the company, trust or partnership at that time.
This section has effect subject to sections 820‑820 to 820‑835 (which set out special rules to avoid double counting).
Note: For the rules about a TC direct control interest, see sections 820‑855 to 820‑865. For the rules about a TC indirect control interest, see sections 820‑870 to 820‑875.
 (2) This section does not apply to an *associate entity of the entity if:
 (a) the associate entity is a *foreign entity and the associate entity is such an associate entity only because of subsection 820‑905(3A); or
 (b) the associate entity is such an associate entity only because of subsection 820‑905(3B).

820‑820  Special rules about calculating TC control interest held by an entity
 (1) This section applies for the purposes of calculating the *TC control interest that an entity holds in a company, trust or partnership.
 (2) Disregard a *TC indirect control interest held by the entity to the extent to which it is calculated by reference to:
 (a) a *TC direct control interest taken into account under paragraph 820‑815(c); or
 (b) a TC indirect control interest taken into account under paragraph 820‑815(d).
 (3) Disregard a *TC indirect control interest held by an *associate entity of the entity to the extent to which it is calculated by reference to:
 (a) a *TC direct control interest taken into account under paragraph 820‑815(a) or (c); or
 (b) a TC indirect control interest taken into account under paragraph 820‑815(b) or (d).
 (3A) Subsection (3) does not apply to an *associate entity of the entity if:
 (a) the associate entity is a *foreign entity and the associate entity is such an associate entity only because of subsection 820‑905(3A); or
 (b) the associate entity is such an associate entity only because of subsection 820‑905(3B).
 (4) Take into account only one of the following things if both would otherwise be counted in calculating