Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_2:p1
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/5)
Character Range: 187999–190951

2                                                                            Subsections 351(3) and (4)                                                                                                           The subsections do not apply

Associate interest in a partnership

 (8) An associate interest that an entity holds in a partnership at a particular time is whichever of the following percentages is applicable, and if there are 2 or more such percentages, the greatest of them:
 (a) in the case of a *corporate limited partnership—100% if the entity is a *general partner of the partnership;
 (b) in the case of a partnership that is not a corporate limited partnership—the percentage of the control of voting power in the partnership that the entity has at that time;
 (c) in any other case—the percentage that the entity holds, or is entitled to acquire, at that time, of any of the following:
 (i) the total amount of assets or capital contributed to the partnership;
 (ii) the total rights of partners to distributions of capital, assets or profits on the dissolution of the partnership;
 (iii) the total rights of partners to distributions of capital, assets or profits otherwise than on the dissolution of the partnership.

820‑910  Associate entity debt

 (1) This section applies to an entity (the relevant entity) that is an *outward investing entity (non‑ADI) or an *inward investing entity (non‑ADI) for a period that is all or a part of an income year, and each *associate entity of the relevant entity that is:
 (a) an *outward investing entity (non‑ADI), an *inward investment vehicle (general), or an *inward investment vehicle (financial), for that period; or
 (b) an *inward investor (general) or an *inward investor (financial) for that period if it carries on its *business in Australia at or through one or more of its *Australian permanent establishments throughout that period.

 (2) The entity's associate entity debt at a particular time during that period is the result of applying the method statement in this subsection.

      Method statement
           Step 1. Apply step 2 to each *associate entity of the relevant entity that is the kind of entity mentioned in paragraph (1)(a) at that particular time. The result of that step is the associate entity debt amount for that associate entity.
           Step 2. Work out the value, as at that time, of all the *debt interests that have been issued to the relevant entity by the *associate entity, if:

                (a) the debt interests remain *on issue at that time; and
                (b) the costs in relation to the debt interest (to the extent that they are not amounts mentioned in paragraph (2)(c) of the definition of debt deduction that are ordinarily payable to an entity other than the relevant entity) are assessable income of the relevant entity for an income year; and
                (c) the terms and conditions for the debt interests are