Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_4:p4
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 4/11)
Character Range: 23885–26630

year, of all the *associate entity debt of the entity, other than associate entity debt that is *controlled foreign entity debt of the entity.
           Step 3. Reduce the result of step 2 by the average value, for that year, of all the *associate entity equity of the entity, other than associate entity equity that is *controlled foreign entity equity of the entity.
           Step 4. Reduce the result of step 3 by the average value, for that year, of all the *controlled foreign entity debt of the entity.
           Step 5. Reduce the result of step 4 by the average value, for that year, of all the *controlled foreign entity equity of the entity.
           Step 6. Reduce the result of step 5 by the average value, for that year, of all the *non‑debt liabilities of the entity.
           Step 7. Reduce the result of step 6 by the average value, for that year, of the entity's *zero‑capital amount. If the result of this step is a negative amount, it is taken to be nil.
           Step 8. Multiply the result of step 7 by 20/21.
           Step 9. Add to the result of step 8 the average value, for that year, of the entity's *zero‑capital amount.
           Step 10. Add to the result of step 9 the average value, for that year, of the entity's *associate entity excess amount. The result of this step is the total debt amount.
Example: GLM Limited, a company that is an Australian entity, has an average value of assets (other than assets attributable to its overseas permanent establishments) of $160 million.

 The average values of its relevant associate entity debt, associate entity equity, controlled foreign entity debt, controlled foreign entity equity, non‑debt liabilities and zero capital amount are $5 million, $5 million, $9 million, $6 million, $5 million and $4 million respectively. Deducting these amounts from the result of step 1 (through applying steps 2 to 7) leaves $126 million. Multiplying $126 million by 20/21 results in $120 million. Adding the average zero capital amount of $4 million results in $124 million. As the company does not have any associate entity excess amount, the total debt amount is therefore $124 million.

Adjusted on‑lent amount

 (3) The adjusted on‑lent amount is the result of applying the method statement in this subsection. In applying the method statement, disregard any amount that is attributable to the entity's *overseas permanent establishments.

      Method statement
           Step 1. Work out the average value, for the income year, of all the assets of the entity.
           Step 2. Reduce the result of step 1 by the average value, for that year, of all the *associate entity equity of the entity, other than associate entity equity that is *controlled foreign