Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:13_3:p9
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 13 cl 3 (pt 9/9)
Character Range: 220242–222020

is the safe harbour capital amount.

Risk‑weighted assets

 (4) For each *Australian permanent establishment covered by the choice, the *risk‑weighted assets of the *head company or single company include that part of the *risk‑weighted assets of the *foreign bank that:
 (a) is attributable to that Australian permanent establishment; but
 (b) is not attributable to the *OB activities of the foreign bank.

820‑617  Effect on safe harbour capital amount if single company is foreign‑controlled Australian ADI and on‑lends section 128F amounts

 (1) In the case of a choice under section 820‑599, this section has effect for the purposes of working out the *safe harbour capital amount of the single company for a period (the test period) that is all or part of the grouping period, if:
 (a) throughout the test period, the single company is both a *wholly‑owned subsidiary of a *foreign bank and an *ADI; and
 (b) the single company has:
 (i) issued *debentures covered by section 128F (which exempts interest on the debentures from withholding tax) of the Income Tax Assessment Act 1936; and
 (ii) made proceeds of the debentures available to an *Australian permanent establishment of the foreign bank, as loans to the Australian permanent establishment, for use in its Australian business;
unless that or another choice by the single company under section 820‑A515 covers the Australian permanent establishment in relation to some or all of that period.

 (2) The single company's *risk‑weighted assets at a particular time during the test period are reduced by the total amounts of proceeds of the debentures that are at that time so made available by the single company.

 (3) This section applies only to the 2002‑2003 income year and to each of the next 3 income years.