Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_3:p1
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 1/26)
Character Range: 101206–104230

3                                             Section 820‑415              average debt is taken to be the average value, for that period, of all the *debt capital of the entity that gives rise to its *debt deductions (other than *allowable OB deductions) for that year that are amounts incurred by the entity during that period
                                                                           average equity capital has the meaning given by subsection (2) of this section

Subdivision 820‑F—Thin capitalisation rules for resident TC groups

Guide to Subdivision 820‑F

820‑450  What this Subdivision is about

      This Subdivision sets out the thin capitalisation rules that apply to a group of entities (called a resident TC group). If those rules apply to the group, the rest of the Division does not apply separately to the entities in the group.
      This Subdivision tells you:
         • how to construct a resident TC group; and
         • how to classify the group (in terms of which Subdivision of this Division to apply); and
         • how to apply this Division to the group (including how the application is modified).

Table of sections

Operative provisions

820‑460 Application
820‑465 Effect on entities in group if debt deduction disallowed
820‑470 Values to be based on what would be in consolidated accounts for group

How to construct a resident TC group for an income year

820‑500 Choice to be made by top entity of a maximum TC group
820‑505 Single group
820‑510 Multiple groups
820‑515 Partnerships, trusts, and Australian permanent establishments of foreign banks, included in a resident TC group
820‑520 No grouping
820‑525 Effect of choice
820‑530 Entities making up group before end of income year

How this Division applies to a resident TC group

820‑550 Classification of the resident TC group
820‑555 Rest of Division not to apply to group headed by foreign‑controlled Australian ADI or its holding company
820‑560 Application of Subdivisions 820‑B and 820‑C to group
820-562 Application of Subdivision 820-D to group
820‑565 Additional application of Subdivision 820‑D to group that includes foreign‑controlled Australian ADI
820‑570 Effect on safe harbour capital amount if foreign‑controlled Australian ADI in the group on‑lends section 128F amounts
820‑575 Additional application of Subdivision 820‑E to group that includes Australian permanent establishment of foreign bank

[This is the end of the Guide.]

Operative provisions

820‑460  Application

 (1) This Subdivision modifies how this Division applies to:
 (a) each entity in a *resident TC group for an income year; and
 (b) each *foreign bank of which an *Australian permanent establishment is in the group.

 (2) However, it does so only if:
 (a) the group is one of these for the income year (because of section 820‑550):
 (i) an *outward investor (general);
 (ii) an *outward investor (financial);
 (iii) an *inward investment vehicle (general);
 (iv) an *inward investment vehicle (financial);
 (v) an