Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_3:p12
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 12/26)
Character Range: 130715–133686

group for an income year, if:
 (a) the group includes an entity (the ADI subsidiary) that is at the end of the income year both a *100% subsidiary of a *foreign bank and an *ADI; and
 (b) the ADI subsidiary 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; and
 (c) the Australian permanent establishment is not in the resident TC group at the end of the income year;
the group's *risk‑weighted assets at a particular time are reduced by the total amounts of proceeds of the debentures that are at that time so made available by the ADI subsidiary.

 (2) This section applies only to the 2001‑2002 income year and to each of the next 4 income years.

820‑575  Additional application of Subdivision 820‑E to group that includes Australian permanent establishment of foreign bank

 (1) Subdivision 820‑E applies to a *resident TC group for an income year, as if the group were an *inward investing entity (ADI), if:
 (a) the group includes at least one *Australian permanent establishment through which a *foreign bank carries on its banking business in Australia; and
 (b) the group includes no entity that, apart from this Subdivision, would be an *outward investing entity (non‑ADI), or an *outward investing entity (ADI), for a period ending at the end of the income year; and
 (c) the group includes no entity that is at the end of the income year both a *foreign controlled Australian entity and an *ADI.
However, it applies with the modifications in this section (in addition to the other modifications in this Subdivision).

 (2) The group's average equity capital for the income year is the average value, for that year, of the amount worked out under subsection (2A).

Note: To calculate an average value for the purposes of this Division, see Subdivision 820‑G.

 (2A) The amount worked out under this subsection as at a particular day is the total of the amounts worked out under the table below for each member of the group that is covered by an item in the table and is in the group on that day.

Note: To work out the times during the income year when an entity or Australian permanent establishment was in the group, see section 820‑530.

Resident TC group treated as an inward investing entity (ADI)
Item                                                           For:                                                                                                               The amount is:
    1                                                          a company                                                                                                          the total value, as at the end of that day, of the company's *paid‑up share