Document ID: chunk:federal_register_of_legislation:C2024A00023:clause:2_11
Version: federal_register_of_legislation:C2024A00023
Segment Type: clause
Provision Reference: sch 2 cl 11
Character Range: 12764–13503

11  Section 820‑1
Omit:

      Financing expenses that an entity can otherwise deduct from its assessable income may be disallowed under this Division in the following circumstances:
         • for an entity that is not an authorised deposit‑taking institution for the purposes of the Banking Act 1959 (an ADI)—the entity's debt exceeds the prescribed level (and the entity is therefore "thinly capitalised");
         • for an entity that is an ADI—the entity's capital is less than the prescribed level (and the entity is therefore "thinly capitalised").
substitute:
      Financing expenses that an entity can otherwise deduct from its assessable income may be disallowed under this Division where the entity is "thinly capitalised".