Document ID: chunk:federal_register_of_legislation:C2024A00023:clause:2_76:p5
Version: federal_register_of_legislation:C2024A00023
Segment Type: clause
Provision Reference: sch 2 cl 76 (pt 5/12)
Character Range: 81606–84461

debt deduction, to the extent that the relevant entity mentioned in subsection 820‑423A(2) incurred it in relation to any of the following:
 (a) the acquisition mentioned in subparagraph 820‑423A(2)(d)(i);
 (b) the holding mentioned in subparagraph 820‑423A(2)(d)(ii).

Financial arrangements involving associate pairs
 (2) If the conditions in subsection 820‑423A(5) are met, then under subsection 820‑423A(1) the *debt deduction is disallowed to the same extent as the extent to which the payer mentioned in paragraph 820‑423A(5)(a) uses the *financial arrangement in a manner that satisfies paragraph 820‑423A(5)(b).

820‑423C  This Subdivision does not limit reduction of debt deductions under other provisions
  Nothing in this Subdivision limits other provisions of this Division in their application to reduce, or further reduce, *debt deductions of an entity.

820‑423D  Schemes relating to this Subdivision
 (1) Subsection (2) applies if the Commissioner is satisfied that:
 (a) it is reasonable to conclude that one or more entities (each of which is a participant) entered into or carried out a *scheme for the principal purpose of, or for more than one principal purpose that included the purpose of, achieving any of the following results:
 (i) subsection 820‑423A(2) does not apply in relation to a *debt deduction;
 (ii) subsection 820‑423A(5) does not apply in relation to a debt deduction;
  (whether or not the debt deduction is a debt deduction of any of the participants and whether or not any of them carried out the scheme or any part of the scheme); and
 (b) the scheme has achieved, or apart from this section would achieve, that purpose.
 (2) The Commissioner may determine that this Act has, and is taken always to have had, effect as if:
 (a) subsection 820‑423A(2) applies in relation to the *debt deduction; or
 (b) subsection 820‑423A(5) applies in relation to the debt deduction.
 (3) A determination under subsection (2) has effect accordingly.
 (4) This section applies whether or not the scheme has been or is entered into or carried out in Australia or outside Australia, or partly in Australia and partly outside Australia.
 (5) A determination under subsection (2) is not a legislative instrument.
 (6) An entity who is dissatisfied with a determination under subsection (2) made in relation to the entity may object against the determination in the manner set out in Part IVC of the Taxation Administration Act 1953.

820‑423E  Modified meaning of associate pair
 (1) This section applies for the purposes of determining whether, for the purposes of this Subdivision, an entity that is a unit trust is an associate pair of another entity.

Treating certain unit trusts as companies
 (2) Subsection (3) applies if any of the following *CGT events are capable of applying to all of the units and interests in the trust: