Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 2/6)
Character Range: 7300051–7302852

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 are attributable to the associate entity's Australian permanent establishments;
 (ii) other assets that are held for the purposes of producing the associate entity's assessable income.
 (3) The relevant entity's associate entity debt at a particular time during the relevant period is the total value of all the *debt interests held by the relevant entity at that time that satisfy all of the following:
 (a) the interests are *on issue at that time;
 (b) each of the interests was *issued by a relevant associate entity;
 (c) each of the interests gives rise to costs:
 (i) that are *debt deductions, for an income year, of the relevant associate entity that issued the interest; and
 (ii) to the extent that the costs are not amounts mentioned in paragraph 820‑40(2)(c) and are costs ordinarily payable to an entity other than the relevant entity—that are assessable income of the relevant entity for an income year;
 (d) the terms and conditions for each of the interests are those that would apply if the relevant entity and the relevant associate entity that issued the interest were dealing at *arm's length with each other.
 (4) For the purposes of subsection (3), take into account the value of a *debt interest issued by a *foreign entity only to the extent that the interest is attributable to any of the following assets that are held by the foreign entity throughout the relevant period:
 (a) assets that are attributable to the foreign entity's *Australian permanent establishments;
 (b) other assets held by the foreign entity for the purposes of producing the foreign entity's assessable income.

820‑915  Associate entity equity
 (1) This section applies to an entity (the relevant entity) that is 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 each entity (relevant associate entity) that is an *associate entity of the relevant entity and that is:
 (a) an *Australian entity; or
 (b) a *foreign entity that, throughout the relevant period, holds any of the following assets:
 (i) assets that are attributable to the foreign entity's *Australian permanent establishments;
 (ii) other assets that are held for the purposes of producing the foreign entity's assessable income.
 (3) The relevant entity's associate entity equity at a particular time during the relevant period is the total value of:
 (a) all the *equity interests that the