Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 5/5)
Character Range: 7161301–7162915

the entity is an *inward investing entity (ADI); and
 (b) the entity's *average equity capital is less than its *minimum capital amount;
to the extent that the debt deduction:
 (c) is attributable to an *Australian permanent establishment of the entity at or through which it carries on its banking business; and
 (d) is not an *allowable OB deduction.
Note: To determine whether an entity is an inward investing entity (ADI) for that period, see subsection 820‑395(2).
 (2) The entity's average equity capital for that period is the sum of the following:
 (a) the average value, for that period, of the *equity capital of the entity that:
 (i) is attributable to its *Australian permanent establishments at or through which it carries on its banking business in Australia; but
 (ii) has not been allocated to the *OB activities of the Australian permanent establishments;
 (b) the average value, for that period, of the total amounts that:
 (i) are made available by the entity to the Australian permanent establishments of the entity as loans to the Australian permanent establishments; and
 (ii) do not give rise to any *debt deductions of the entity for that or any other income year.
 (3) For the purposes of determining:
 (a) the entity's *minimum capital amount for that period; and
 (b) the amount of each *debt deduction to be disallowed;
sections 820‑400 to 820‑415 apply in relation to that entity and that period with the modifications set out in the following table:

Modifications of sections 820‑400 to 820‑415
Item                                          Provisions                   Modifications