Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_4:p7
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 7/11)
Character Range: 31415–34265

(3) On the basis of the factual assumptions set out in subsection (2), the following factors must be taken into account in determining whether or not an amount satisfies paragraphs (1)(a) and (b):
 (a) the functions performed, the assets used, and the risks assumed, by the entity in relation to the Australian business throughout that year;
 (b) the terms and conditions of the *debt capital that the entity actually had in relation to the Australian business throughout that year;
 (c) the nature of, and title to, any assets of the entity attributable to the Australian business that were available to the entity throughout that year as security for its debt capital for that business;
 (d) the purposes for which *schemes for debt capital had been actually entered into by the entity in relation to the Australian business throughout that year;
 (e) the entity's capacity to meet all its liabilities in relation to the Australian business (whether during that year or at any other time);
 (f) the profit of the entity (within the meaning of the *accounting standards), and the return on its capital, in relation to the Australian business (whether during that year or at any other time);
 (g) the debt to equity ratios of the following throughout that year:
 (i) the entity;
 (ii) the entity in relation to the Australian business;
 (iii) each of the entity's *associate entities that engage in commercial activities similar to the Australian business;
 (h) the commercial practices adopted by independent parties dealing with each other at arm's length in the industry in which the entity carries on the Australian business throughout that year (whether in Australia or in comparable markets elsewhere);
 (i) the way in which the entity financed its commercial activities (other than the Australian business) throughout that year;
 (j) the general state of the Australian economy throughout that year;
 (k) all of the above factors existing at the time when the entity last entered into a scheme that gave rise to an actual *debt interest attributable to the Australian business that remains *on issue throughout that year;
 (l) any other factors which are specified in the regulations made for the purposes of this section, including factors specific to an *outward investor (general) or an *outward investor (financial).

Commissioner's power

 (4) If the Commissioner considers an amount worked out by the entity under this section does not appropriately take into account the factual assumptions and the relevant factors, the Commissioner may substitute another amount that the Commissioner considers better reflects those assumptions and factors.

820‑110  Worldwide gearing debt amount

Outward investor (general)

 (1) If the entity is an *outward investor (general) for the income year, the worldwide gearing debt amount is the result