Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_3:p24
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 24/26)
Character Range: 162670–165445

(other than any TC direct control interests that have been taken into account in calculating the interest mentioned in subparagraph (ii));
 (iv) the TC indirect control interests in the partnership held by the entity's associate entities (other than any TC indirect control interests that have been taken into account in calculating the interest mentioned in subparagraph (ii)).

Note: Paragraphs 820‑875(2)(a) and (b) set out special rules under which an entity is taken to hold a TC control tracing interest in another entity that is equal to 100%, which could then be taken into account in calculating a TC indirect control interest.

Thin capitalisation control interest

820‑815  General rule about thin capitalisation control interest in a company, trust or partnership

Meaning of TC control interest

 (1) The thin capitalisation control interest (or TC control interest) that an entity holds in a company, trust or partnership at a particular time is the total of the following interests:
 (a) the *TC direct control interest (if any) held by the entity in the company, trust or partnership at that time;
 (b) the *TC indirect control interest (if any) held by the entity in the company, trust or partnership at that time;
 (c) the TC direct control interests (if any) held by the entity's *associate entities in the company, trust or partnership at that time;
 (d) the TC indirect control interests (if any) held by the entity's associate entities in the company, trust or partnership at that time.
This section has effect subject to sections 820‑820 to 820‑835 (which set out special rules to avoid double counting).

Note: For the rules about a TC direct control interest, see sections 820‑855 to 820‑865. For the rules about a TC indirect control interest, see sections 820‑870 to 820‑875.

 (2) This section does not apply to an *associate entity of the entity if it is such an associate entity only because of subsection 820‑905(3B).

820‑820  Special rules about calculating TC control interest held by an entity

 (1) This section applies for the purposes of calculating the *TC control interest that an entity holds in a company, trust or partnership.

 (2) Disregard a *TC indirect control interest held by the entity to the extent to which it is calculated by reference to:
 (a) a *TC direct control interest taken into account under paragraph 820‑815(c); or
 (b) a TC indirect control interest taken into account under paragraph 820‑815(d).

 (3) Disregard a *TC indirect control interest held by an *associate entity of the entity to the extent to which it is calculated by reference to:
 (a) a *TC direct control interest taken into account under paragraph 820‑815(a) or (c); or
 (b) a TC indirect control interest taken into account under paragraph