Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 1/6)
Character Range: 7297327–7300309

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 a *general class investor, an *outward investing financial entity (non‑ADI), or an *inward investing financial entity (non‑ADI), for a period (the relevant period) that is all or a part of an income year.
 (2) This section also applies, for the relevant entity, to an *associate entity (a relevant associate entity) of the relevant entity, if:
 (a) either:
 (i) the associate entity is an *outward investing financial entity (non‑ADI) or an *inward investment vehicle (financial), for the relevant period; or
 (ii) the associate entity is an *inward investor (financial) for the relevant period, and the condition in subsection (2A) of this section is satisfied; and
 (b) neither section 820‑35 ($2 million debt deductions threshold) nor section 820‑37 (exemption for entity with 90% Australian assets) prevents Subdivision 820‑B, 820‑C, 820‑D or 820‑E from disallowing any *debt deduction of the relevant associate entity for the income year; and
 (c) for some or all of the relevant period, the relevant associate entity does not meet the conditions in subsection 820‑39(3) (about exemption of certain special purpose entities); and
 (d) the relevant associate entity is not an *exempt entity for the income year.
 (2A) The condition referred to in subparagraph (2)(a)(ii) is that the relevant period consists of one or more periods each of which is either or both of these:
 (a) a period throughout which the *associate entity carries on its *business in Australia at or through one or more of its *Australian permanent establishments;
 (b) a period throughout which the associate entity holds any of the following assets:
 (i) assets that