for a public company—the consolidated entity disclosure statement required by subsection (3A); and

if the accounting standards require the public company to prepare financial statements in relation to a consolidated entity—a statement that includes the following information for each entity that was, at the end of the financial year, part of the consolidated entity:

the entity’s name (if any) at that time;

whether, at that time, the entity was a body corporate, partnership, or trust;

whether, at that time, the entity was a trustee of a trust within the consolidated entity, a partner in a partnership within the consolidated entity, or a participant in a joint venture within the consolidated entity;

if the entity is a body corporate—the place at which the entity was incorporated or formed;

if the entity is a body corporate with a share capital—the percentage of the entity’s issued share capital (excluding any part that carries no right to participate beyond a specified amount in a distribution of either profits or capital) that was held, directly or indirectly, by the public company at that time;

(vi) whether, at that time, the entity was an Australian resident (within the meaning of the Income Tax Assessment Act 1997) or a foreign resident (within the meaning of that Act);

if the entity was a foreign resident as described in subparagraph (vi)—a list of each foreign jurisdiction in which the entity was, at that time, a resident for the purposes of the law of the foreign jurisdiction relating to foreign income tax (within the meaning of that Act); or

if paragraph (a) does not apply—a statement to that effect.

whether, in the directors’ opinion, the consolidated entity disclosure statement required by subsection (3A) is true and correct; and

the consolidated entity disclosure statement required by subsection 295(3A) is true and correct; and

the step 5A amount under section 705-102; or

the step 6 amount under section 705-110; or

the step 6A amount under section 705-112;

the step 5A amount under section 705-102; or

the step 6 amount under section 705-110; or

the step 6A amount under section 705-112;

had not been applied by the joining entity under paragraph 820-56(2)(b) for the income year in which the joining time occurred or any earlier income year; and

accrued to the joined group before the joining time (see subsection (2) of this section).

did not accrue to the joined group before the joining time (see subsection (3)); and

are transferred to the *head company under section 820-590; and

are not cancelled under section 820-592;

the entity:

(i) is not a *general class investor in relation to the income year; and

(ii) has not made a choice under subsection 820-85(2C) or 820-185(2C) in relation to the income year; and

Subdivision 820-AA;

Subdivision 820-B;

Subdivision 820-C.

Subdivision 820-EAA;

any other provision in this Division, to the extent that it relates to that Subdivision.

either:

the entity is an *outward investing financial entity (non-ADI) or an *outward investing entity (ADI) for a period that is all or any part of that year (and is not a *general class investor for that year); or

(ii) assuming that the entity were a *financial entity for all of that year, it would be, for all of that year, an outward investing financial entity (non-ADI) and not an inward investing financial entity (non-ADI); and

the entity is not also an *inward investing financial entity (non-ADI) or an *inward investing entity (ADI) for all or any part of that year; and

the entity is a *general class investor (see subsection (2)); and

the entity:

(i) has not made a choice under subsection (3) or (4) (fixed ratio test applies); or

has made a choice under subsection (3) (group ratio test applies); or

has made a choice under subsection (4) (third party debt test applies).

(a) for a period that is all or part of the income year, the entity is not any of the following:

an *outward investing financial entity (non-ADI);

an *inward investing financial entity (non-ADI);

an *outward investing entity (ADI);

an *inward investing entity (ADI); and

assuming that the entity were a *financial entity for all of the income year, it would be, for the income year, any of the following:

an outward investing financial entity (non-ADI);

an inward investing financial entity (non-ADI).

the entity is a *GR group member for the period corresponding to the income year of a *GR group for the period; and

the *GR group EBITDA for the period of the GR group is greater than zero.

on or before the earlier of the following days:

the day the entity lodges its *income tax return for the income year;

the day the entity is required to lodge its income tax return for the income year; or

a later day allowed by the Commissioner.

(a) the entity may not make a choice under subsection 820-46(3) (group ratio test applies) in relation to that income year; and

any choice previously made under subsection 820-46(3) by the entity in relation to that income year is revoked and taken never to have been made.

the entity made the choice;

the entity has applied to the Commissioner, in the *approved form, to revoke the choice before the earlier of the following days:

the day that is 4 years after the day the entity lodged its *income tax return for the income year;

the day that is 4 years after the day the entity was required to lodge its income tax return for the income year;

it is fair and reasonable, having regard to matters the Commissioner considers relevant, to allow the entity to revoke the choice.

the first entity is a *member of an *obligor group in relation to a *debt interest; and

the entity that issued the debt interest:

has made a choice under subsection 820-46(4) in relation to that income year (including a choice that is taken to be made under subsection 820-46(5) in relation to a different obligor group); and

is required to lodge an *income tax return for the income year; and

the first entity:

is an *associate entity of the entity mentioned in paragraph (b) of this subsection; and

is required to lodge an *income tax return for the income year.

disregard the requirement in subsections 820-905(1) and (2A) that the entity is an *associate of the other entity, unless only paragraph 820-905(1)(b) applies; and

treat the references in paragraphs 820-905(1)(a) and 820-905(2A)(a) to “an *associate interest of 50% or more” as instead being a reference to “a *TC control interest of 20% or more”; and

treat subsection 820-860(3) as applying for the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection); and

treat the purposes mentioned in subparagraphs 820-870(1)(b)(i) and (ii) as including the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection).

the entity has entered into a *cross staple arrangement with one or more other entities; and

one or more of those other entities has made a choice under subsection 820-46(4) in relation to that income year (including a choice that is taken to be made under subsection 820-46(5)).

(a) an entity (the borrower) has issued a *debt interest to another entity (the creditor); and

(b) the creditor has recourse for payment of the debt to which the debt interest relates to assets of one or more other entities (each of which is an obligor entity).

(a) if the entity has not made a choice under subsection 820-46(3) or (4) in relation to the income year (fixed ratio test applies)—the amount by which the entity’s *net debt deductions for the income year exceed the entity’s *fixed ratio earnings limit for the income year (see section 820-51); or

if the entity has made a choice under subsection 820-46(3) in relation to the income year (group ratio test applies)—the amount by which the entity’s net debt deductions for the income year exceed the entity’s *group ratio earnings limit for the income year (see section 820-51); or

if the entity has made a choice under subsection 820-46(4) in relation to the income year (third party debt test applies)—the amount by which the entity’s debt deductions for the income year exceed the entity’s *third party earnings limit for the income year (see section 820-427A).

first, divide the total disallowed amount by the *debt deductions of the entity for the income year;

next, multiply the amount of the particular debt deduction by the result of paragraph (a).

first, work out the sum of the entity’s *debt deductions (disregarding this Division other than Subdivision 820-EAA) for the income year;

next, work out the sum of each amount included in the entity’s assessable income for that year that is:

interest, an amount in the nature of interest, or any other amount that is economically equivalent to interest; or

any amount directly incurred by another entity in obtaining or maintaining the financial benefits received, or to be received, by the other entity under a *scheme giving rise to a *debt interest; or

any other expense that is incurred by another entity and that is specified in the regulations made for the purposes of this subparagraph;

next, subtract the result of paragraph (b) from the result of paragraph (a).

first, work out the entity’s taxable income or *tax loss for the income year (disregarding the operation of this Division (other than Subdivision 820-EAA) and treating a tax loss as a negative amount);

next, add the entity’s *net debt deductions for the income year;

next, add the sum of the entity’s deductions (if any) from its assessable income for the income year that are any of the following:

*general deductions that relate to forestry establishment and preparation costs unless those costs relate to the clearing of native forests;

deductions under Divisions 40 and 43 (other than deductions for the entire amount of an expense incurred by the entity);

deductions under section 70-120;

next, if the entity is an entity to which subsection 820-60(1) applies—add the *excess tax EBITDA amount (if any) worked out under that section for the income year;

next, make adjustments to the result of paragraph (c) or (ca), as the case requires, in accordance with regulations (if any) made for the purposes of this paragraph.

the entity chooses to deduct, under subsection 36-17(2) or (3), all of the entity’s tax losses for *loss years occurring before the income year; and

(b) subsection 36-17(5) does not apply to that choice.

treat the reference in subsection (1) to the entity’s taxable income as being a reference to the *net income of the entity; and

treat the reference in subsection (1) to the entity’s *net debt deductions as being a reference to the entity’s net debt deductions taken into account in working out that net income; and

treat the reference in subsection (1) to the entity’s deductions as being a reference to the entity’s deductions taken into account in working out that net income; and

treat the references in subsection (1) to the entity’s assessable income as being a reference to the entity’s assessable income taken into account in working out that net income.

disregard the operation of the following provisions in relation to the trust:

Subdivision 115-C;

(ii) Income Tax Assessment Act 1936; andDivision 6 of Part III of the

disregard distributions from the trust to the entity.

treat the reference in subsection (1) to the entity’s taxable income as being a reference to the *net income of the entity; and

treat the reference in subsection (1) to the entity’s *net debt deductions as being a reference to the entity’s net debt deductions taken into account in working out that net income; and

treat the reference in subsection (1) to the entity’s deductions as being a reference to the entity’s deductions taken into account in working out that net income; and

treat the references in subsection (1) to the entity’s assessable income as being a reference to the entity’s assessable income taken into account in working out that net income.

disregard the operation of Division 276 in relation to the AMIT; and

disregard distributions from the AMIT to the entity.

treat the reference in subsection (1) to the entity’s taxable income as being a reference to the *net income of the entity; and

treat the reference in subsection (1) to the entity’s *net debt deductions as being a reference to the entity’s net debt deductions taken into account in working out that net income.

treat the reference in subsection (1) to the entity’s deductions as being a reference to the entity’s deductions taken into account in working out that net income; and

treat the references in subsection (1) to the entity’s assessable income as being a reference to the entity’s assessable income taken into account in working out that net income.

disregard the requirement in subsections 820-905(1) and (2A) that the entity is an *associate of the other entity, unless only paragraph 820-905(1)(b) applies; and

treat the references in paragraphs 820-905(1)(a) and 820-905(2A)(a) to “an *associate interest of 50% or more” as instead being a reference to “a *TC control interest of 10% or more”; and

treat subsection 820-860(3) as applying for the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection); and

treat the purposes mentioned in subparagraphs 820-870(1)(b)(i) and (ii) as including the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection).

first, work out the *GR group net third party interest expense, for that period, of the GR group;

next, work out the *GR group EBITDA for that period of the GR group;

next, divide the result of paragraph (a) by the result of paragraph (b).

if *audited consolidated financial statements for the period have been prepared for a worldwide parent entity (as described in subsection 820-935(6))—the group comprised of all of the following:

the worldwide parent entity;

each other entity that is fully consolidated on a line-by-line basis in those audited consolidated financial statements; or

if paragraph (a) does not apply, and *global financial statements have been prepared for the period for a *global parent entity—the group comprised of all of the following:

the global parent entity;

each other entity that is fully consolidated on a line-by-line basis in those global financial statements.

(a) the GR group parent for the period of the *GR group is the worldwide parent entity mentioned in that paragraph; and

(b) each of the entities mentioned in that paragraph is a GR group member for the period of the *GR group.

(a) the GR group parent for the period of the *GR group is the *global parent entity mentioned in that paragraph; and

(b) each of the entities mentioned in that paragraph is a GR group member for the period of the *GR group.

where paragraph 820-53(2)(a) applies—the *audited consolidated financial statements for the period for the *GR group parent for the period of the group were prepared on the basis that the following were treated as interest:

an amount in the nature of interest;

any other amount that is economically equivalent to interest; or

where paragraph 820-53(2)(b) applies—the *global financial statements for the period for the GR group parent for the period of the group were prepared on the basis that the following were treated as interest:

an amount in the nature of interest;

any other amount that is economically equivalent to interest.

the amount of the *GR group’s net third party interest expense for the period, as disclosed in the following statements:

if paragraph 820-53(2)(a) applies—the *audited consolidated financial statements for the *GR group parent for the period for the GR group;

if paragraph 820-53(2)(b) applies—the *global financial statements for the GR group parent for the period for the GR group;

if those statements do not disclose that net third party interest expense—the amount worked out as follows:

first, identify the amount of the group’s third party interest expenses for the period disclosed in those statements;

next, reduce the result of subparagraph (i) by the amount of each payment (if any) covered by subsection (3), to the extent that it was a factor in working out those third party interest expenses;

next, reduce the result of subparagraph (ii) by the amount of the group’s third party interest income for the period disclosed in those statements;

next, increase the result of subparagraph (iii) by the amount of each payment (if any) covered by subsection (3), to the extent that it was a factor in working out that third party interest income.

the payment is made by an entity to an *associate entity of the entity; and

either:

(i) the entity is a *GR group member for the period of the *GR group and the associate entity is not such a GR group member; or

the entity is not a GR group member for the period of the GR group and the associate entity is such a GR group member.

for an entity—the amount that would be the entity’s net interest expense for the period if the following payments were disregarded:

a payment that is made by the entity to an *associate entity of the entity;

a payment that is made by an associate entity of the entity to the entity; or

for a GR group—the amount that would be the GR group’s net interest expense for the period if the following payments were disregarded:

a payment that is made by a *GR group member of the GR group to an associate entity of any GR group member of the GR group;

a payment that is made by an associate entity of a GR group member of the GR group to any GR group member of the GR group.

disregard the requirement in subsections 820-905(1) and (2A) that the entity is an *associate of the other entity, unless only paragraph 820-905(1)(b) applies; and

treat the references in paragraphs 820-905(1)(a) and 820-905(2A)(a) to “an *associate interest of 50% or more” as instead being a reference to “a *TC control interest of 20% or more”; and

treat subsection 820-860(3) as applying for the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection); and

treat the purposes mentioned in subparagraphs 820-870(1)(b)(i) and (ii) as including the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection).

the entity’s net profit (disregarding tax expenses);

the entity’s *adjusted net third party interest expense;

the entity’s depreciation and amortisation expenses.

the GR group’s net profit (disregarding tax expenses);

the GR group’s *adjusted net third party interest expense;

the GR group’s depreciation and amortisation expenses;

if paragraph 820-53(2)(a) applies—the *audited consolidated financial statements for the *GR group parent for the period for the GR group; or

if paragraph 820-53(2)(b) applies—the *global financial statements for the GR group parent for the period for the GR group.

(a) the entity has not made a choice under subsection 820-46(3) or (4) in relation to the income year (fixed ratio test applies); and

the entity’s *fixed ratio earnings limit for the income year exceeds the sum of the entity’s *net debt deductions for the income year.

first, work out the amount of the excess mentioned in paragraph (1)(b);

next, apply against that excess each of the entity’s *FRT disallowed amounts for the previous 15 income years (to the extent that they have not already been applied under this paragraph in respect of any of those previous income years).

apply *FRT disallowed amounts in sequence, where a FRT disallowed amount for an earlier income year is applied before a FRT disallowed amount from a later income year; and

apply FRT disallowed amounts up to, but not beyond, the excess mentioned in paragraph (1)(b).

if *debt deductions of the entity for the income year are disallowed under subsection 820-46(1) and the amount disallowed is worked out in accordance with paragraph 820-50(1)(a) (fixed ratio test applies)—the amount disallowed; or

otherwise—zero.

(a) an entity has not made a choice under subsection 820-46(3) or (4) in relation to an income year; and

the entity makes a choice under subsection 820-46(3) or (4) in relation to a subsequent income year.

if the entity is a company—subsection (4) applies; or

if the entity is a trust—subsection (5) applies.

the *FRT disallowed amount were a *tax loss; and

the disallowance year were the *loss year; and

the following provisions were disregarded:

subsection 165-115B(3);

subsection 165-115BA(5);

section 415-35;

(a) the *FRT disallowed amount were a tax loss (within the meaning of Schedule 2F to the Income Tax Assessment Act 1936); and

the disallowance year were a loss year (within the meaning of that Schedule);

the controlling entity is, for a period that is all or part of an income year, one of the following entities:

a company that is an *Australian entity;

a unit trust that is a *resident trust for CGT purposes;

a *managed investment trust;

a partnership that is an Australian entity; and

the controlling entity is a *general class investor for all or part of the income year; and

the controlling entity has not made a choice under subsection 820-46(3) or (4) in relation to the income year; and

(d) one or more other entities (each of which is a controlled entity) satisfy the conditions in subsection (2) of this section in relation to the controlling entity for the income year.

the controlling entity has a *TC direct control interest of 50% or more in the test entity at any time during the income year; and

the test entity is, for a period that is all or part of the income year, one of the following entities:

a company that is an *Australian entity;

a unit trust that is a *resident trust for CGT purposes;

a *managed investment trust;

a partnership that is an Australian entity; and

the test entity is a *general class investor for all or part of the income year; and

the test entity has not made a choice under subsection 820-46(3) or (4) in relation to the income year.

the controlled entity’s *net debt deductions for the income year (for the purposes of this paragraph, treat a negative amount of net debt deductions as nil);

the total of the controlled entity’s *FRT disallowed amounts for the 15 income years ending immediately before the income year (to the extent those amounts have not been applied under section 820-56).

work out the controlling entity’s *TC direct control interest for each day in the income year; and

for each day on which the amount was 50% or greater, add the amounts; and

divide the result of paragraph (b) by the number of days in the income year during which the controlled entity was in existence. Express the result as a percentage.

the reference to “greatest” were a reference to “least”; and

paragraph 820-865(b) were omitted.

(a) for the purposes of paragraph 336(a) of the Income Tax Assessment Act 1936, treat a partnership as being an Australian entity if, at that time, a *direct participation interest of 50% or more is held in the partnership by one or more of the following:

an Australian resident;

an *Australian trust; and

disregard section 337 of that Act.

an entity is an *outward investing financial entity (non-ADI) (see subsection (2)) for all of an income year; and

either:

the entity has made a choice under subsection (2C) in relation to the income year; or

otherwise—the entity’s *adjusted average debt (see subsection (3)) for the income year exceeds its *maximum allowable debt (see section 820-90) for the income year.

if paragraph (1A)(b)(i) applies—all or part of the entity’s *debt deductions for the income year (to the extent that they are not attributable to an *overseas permanent establishment of the entity); or

if paragraph (1A)(b)(ii) applies—all or a part of each debt deduction of the entity for the income year (to the extent that it is not attributable to an overseas permanent establishment of the entity).

first, divide the total disallowed amount by the *debt deductions of the entity for the income year;

next, multiply the amount of the particular debt deduction by the result of paragraph (a).

an entity is an *inward investing financial entity (non-ADI) (see subsection (2)) for all of an income year, but is not also an *outward investing financial entity (non-ADI) (see section 820-85) for all or any part of that year; and

either:

the entity has made a choice under subsection (2C) in relation to the income year; or

otherwise—the entity’s *adjusted average debt (see subsection (3)) for the income year exceeds its *maximum allowable debt (see section 820-190) for the income year.

if paragraph (1A)(b)(i) applies—all or part of the entity’s *debt deductions for the income year; or

if paragraph (1A)(b)(ii) applies—all or a part of each debt deduction of the entity for the income year.

an *inward investment vehicle (financial) for that period (as set out in item 1 of the following table); or

an *inward investor (financial) for that period (as set out in item 2 of that table).

first, divide the total disallowed amount by the *debt deductions of the entity for the income year;

next, multiply the amount of the particular debt deduction by the result of paragraph (a).

debt deductions in relation to the acquisition of CGT assets, or legal or equitable obligations, from associate pairs of the acquirer; and

debt deductions in relation to a financial arrangement that is entered into by an entity to fund etc. certain payments or distributions to one or more associate pairs of the entity.

the entity is any of the following for that year:

a *general class investor;

an *outward investing financial entity (non-ADI);

an *inward investing financial entity (non-ADI); and

(aa) the entity is not a *securitisation vehicle; and

subsection (2) or (5) applies.

(a) an entity (the acquirer) *acquires a *CGT asset, or a legal or equitable obligation, either directly, or indirectly through one or more interposed entities, from one or more other entities (each of which is a disposer);

(b) one or more of the disposers (each of which is an associate disposer) is an *associate pair of the acquirer;

(c) the entity mentioned in subsection (1) (the relevant entity) is:

the acquirer; or

an associate pair of the acquirer; or

an associate pair of an associate disposer;

the relevant entity’s *debt deduction mentioned in subsection (1) is, wholly or partly, in relation to any of the following:

the acquisition mentioned in paragraph (a) of this subsection;

the acquirer’s holding of the CGT asset, or legal or equitable obligation;

the relevant entity’s debt deduction mentioned in subsection (1) is referable to an amount paid or payable, either directly or indirectly, to any of the following:

an associate pair of the relevant entity;

an associate pair of the acquirer;

an associate pair of an associate disposer;

the acquisition mentioned in paragraph (a) of this subsection is not covered by section 820-423AA (which is about exceptions);

(g) the relevant entity has not made a choice under subsection 820-46(4) to use the third party debt test for the income year mentioned in subsection (1) of this section.

that subsection may apply in relation to an indirect *acquisition by an entity through one or more interposed entities even if an acquisition in the series is covered by section 820-423AA (which is about exceptions); and

in determining whether an acquisition occurs indirectly through one or more interposed entities:

it is sufficient if acquisitions exist between each entity; and

it is not necessary to demonstrate that each acquisition in a series of acquisitions happened before the next acquisition.

(a) an entity (the payer) enters into, or has a *financial arrangement with another entity;

the payer uses the financial arrangement to:

fund; or

facilitate the funding of;

(iii) the payer makes to an entity (an associate recipient) that is an *associate pair of the payer; and

is covered by subsection (5A) (which is about types of payments or distributions);

(c) the entity mentioned in subsection (1) (the relevant entity) is any of the following:

the payer;

an associate pair of the payer;

an associate pair of an associate recipient;

the relevant entity’s *debt deduction mentioned in subsection (1) is, wholly or partly, in relation to the financial arrangement mentioned in paragraph (a) of this subsection;

the relevant entity’s debt deduction is referable to an amount paid or payable, either directly or indirectly, to any of the following:

an associate pair of the relevant entity;

an associate pair of the payer;

an associate pair of an associate recipient;

(f) the relevant entity has not made a choice under subsection 820-46(4) to use the third party debt test for the income year mentioned in subsection (1) of this section.

a *dividend, *distribution or *non-share distribution;

(b) a distribution by a trustee or partnership;

a return of capital, including a return of capital made by a distribution or payment made by a trustee or partnership;

a payment or distribution in respect of the cancellation or redemption of a *membership interest in an entity;

a *royalty, or a similar payment or distribution for the use of, or right to use, an asset;

a payment or distribution that is wholly or partly referable to the repayment of principal under a *debt interest if:

the debt interest is issued by the payer; and

the debt interest is a *financial arrangement that satisfies paragraphs (5)(a), (b) and (c);

a payment or distribution of a kind similar to a payment or distribution mentioned in the preceding paragraphs;

a payment or distribution prescribed by the regulations.

the payments or distributions mentioned in that paragraph may be made:

directly, or indirectly through one or more interposed entities (see subsection (7)); and

before, at or after the time the payer enters into or has the *financial arrangement mentioned in paragraph (5)(a); and

a recipient may be the entity with whom the payer enters into or has the financial arrangement, or another entity.

it is sufficient if payments exist between each interposed entity; and

it is not necessary to demonstrate that each payment in a series of payments funds the next payment, or is made after the previous payment.

the CGT asset is a *membership interest in:

an *Australian entity; or

a *foreign entity that is a company; and

the membership interest has not previously been held by any entity.

the CGT asset is a *depreciating asset other than an intangible asset;

(b) an entity (the acquirer) holds the CGT asset immediately after its acquisition;

at the time of the acquisition, it is reasonable to conclude that the acquirer expects to use the CGT asset:

for a *taxable purpose; and

within Australia; and

within 12 months;

at the time of the acquisition, the CGT asset has not been *installed ready for use, or previously used for a taxable purpose, by any of the following:

the acquirer;

an associate disposer of the acquirer;

an *associate pair of the acquirer.

the CGT asset is a *debt interest;

(b) an entity (the acquirer) holds the debt interest immediately after its acquisition;

the debt interest is issued by an *associate pair of the acquirer;

the debt interest has not previously been held by any entity.

the acquisition mentioned in subparagraph 820-423A(2)(d)(i);

the holding mentioned in subparagraph 820-423A(2)(d)(ii).

(a) it is reasonable to conclude that one or more entities (each of which is a participant) entered into or carried out a *scheme for the principal purpose of, or for more than one principal purpose that included the purpose of, achieving any of the following results:

subsection 820-423A(2) does not apply in relation to a *debt deduction;

subsection 820-423A(5) does not apply in relation to a debt deduction;

the scheme has achieved, or apart from this section would achieve, that purpose.

subsection 820-423A(2) applies in relation to the *debt deduction; or

subsection 820-423A(5) applies in relation to the debt deduction.

*CGT event E4;

*CGT event E10.

the trust is an *associate of another entity; or

another entity is an associate of the trust;

treat the trust as sufficiently influenced by another entity or other entities if the trust is accustomed or under an obligation (whether formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the other entity or other entities (whether those directions, instructions or wishes are, or might reasonably be expected to be, communicated directly or through interposed companies, partnerships or trusts); and

another entity or other entities are taken to hold a majority voting interest in the trust if either of the following percentages is not less than 50%:

the percentage of the income of the trust represented by the share of the income to which the other entity or other entities are entitled, or that the other entity or other entities are entitled to acquire;

the percentage of the corpus of the trust represented by the share of the corpus to which the other entity or other entities are entitled, or that the other entity or other entities are entitled to acquire; and

disregard the operation that paragraphs 318(6)(b) and (c) of that Act would otherwise have by reason only of subsection (3) of this section.

(a) is sufficiently influenced by another entity for the purposes of Income Tax Assessment Act 1936; orsection 318 of the

sufficiently influences another entity for the purposes of that section.

there is any breach by any entity of the terms of a *debt interest issued by, or held by, the trust; and

there are reasonable grounds to believe that the breach occurred only to protect the interests of secured creditors in relation to the debt interest;

(a) for the purposes of paragraph 336(a) of the Income Tax Assessment Act 1936, treat a partnership as being an Australian entity if, at that time, a *direct participation interest of 50% or more is held in the partnership by one or more of the following:

an Australian resident;

an *Australian trust; and

disregard section 337 of that Act.

general class investors that make a choice, or that are taken to have made a choice, under subsection 820-46(4); and

outward investing financial entities (non-ADI) that make a choice under subsection 820-85(2C); and

inward investing financial entities (non-ADI) that make a choice under subsection 820-185(2C).

the debt deduction is directly associated with hedging or managing the interest rate risk in respect of the debt interest; and

the debt deduction is not referable to an amount paid or payable, directly or indirectly, to an *associate entity (see section 820-427D) of the entity.

the entity issued the debt interest to an entity that is not an *associate entity (see section 820-427D) of the entity;

the debt interest is not held at any time in the income year by an entity that is an associate entity of the entity;

disregarding recourse to minor or insignificant assets, the holder of the debt interest has recourse for payment of the debt to which the debt interest relates only to Australian assets that:

are covered by subsection (4); and

are not rights covered by subsection (5) (about credit support rights);

the entity uses all, or substantially all, of the proceeds of issuing the debt interest to fund its commercial activities in connection with Australia that do not include:

any *business carried on by the entity at or through its *overseas permanent establishments; and

the holding by the entity of any *associate entity debt, *controlled foreign entity debt or *controlled foreign entity equity;

the entity is an *Australian entity (see section 820-427E).

are held by the entity; or

are *membership interests in the entity (unless the entity has a legal or equitable interest, whether directly or indirectly, in an asset that is not an Australian asset); or

are held by an *Australian entity that is a *member of the *obligor group in relation to the *debt interest.

is any of the following:

a right that provides recourse, directly or indirectly, only to one or more Australian assets covered by subsection (4) that are not rights covered by this subsection;

a right that, assuming that the holder of the right exercised the right, would not reasonably be expected to allow, directly or indirectly, the holder or another entity to have recourse for payment of the debt mentioned in paragraph (3)(c) against an *associate entity (see section 820-427D) of the entity that issued that debt interest;

a right that relates wholly to the creation or development of a *CGT asset that is, or is reasonably expected to be, land situated in Australia (including an interest in land, if the land is situated in Australia);

a right that relates wholly to the creation or development of a CGT asset that is, or is reasonably expected to be, moveable property situated, or to be situated, on land of a kind mentioned in subparagraph (iii), where that moveable property is, or is reasonably expected to be, relevant to the income producing use of the land and situated on the land for the majority of its useful life;

(v) a right that relates wholly to the creation or development of a CGT asset that is, or is reasonably expected to be, offshore renewable energy infrastructure (within the meaning of the Offshore Electricity Infrastructure Act 2021) situated, or to be situated, in a declared area (within the meaning of that Act) for the majority of its useful life;

(vi) a right that relates wholly to the creation or development of a CGT asset that is, or is reasonably expected to be, offshore electricity transmission infrastructure (within the meaning of the Offshore Electricity Infrastructure Act 2021) that is directly related to offshore renewable energy infrastructure covered by subparagraph (v); and

(b) assuming that the holder of the right exercised the right, the right would not reasonably be expected to allow, directly or indirectly, the holder or another entity to have recourse for payment of the debt mentioned in paragraph (3)(c) of this section against a *foreign entity that is an *associate entity of the entity that issued the *debt interest.

(a) that debt interest (the relevant debt interest); and

the debt interest that is the ultimate debt interest mentioned in subsection 820-427C(1) in relation to the relevant debt interest.

treat the reference in subparagraph 820-427A(3)(d)(ii) to *associate entity debt as being a reference to associate entity debt other than:

a debt interest that satisfies the conditions in subsection 820-427C(1) in relation to the ultimate debt interest; or

a debt interest issued by an entity that is an *Australian entity and that has made a choice under subsection 820-46(4) to use the third party debt test for the income year; and

treat references in paragraphs 820-427A(4)(a) and (b) to the entity as including the conduit financer mentioned in paragraph 820-427C(1)(a) and each entity that issues a debt interest that satisfies the conditions in subsection 820-427C(1) in relation to the ultimate debt interest.

treat the conditions in paragraphs 820-427A(3)(a) and (b) as being satisfied; and

treat subsection 820-427A(3) as also including the condition that the ultimate debt interest satisfies the *third party debt conditions (having regard to subsection (2) of this section) in relation to the income year.

(a) an entity (the conduit financer) issues a *debt interest (the ultimate debt interest) to an entity (the ultimate lender) that is not an *associate entity (see section 820-427D) of the conduit financer; and

(b) an entity (the borrower) that is an associate entity of the conduit financer issues another debt interest (the relevant debt interest) to:

the conduit financer; or

(ii) another entity (the conduit borrower) that is an associate entity of the conduit financer and the borrower; and

the amount loaned under the relevant debt interest:

if subparagraph (b)(i) applies—was financed by the conduit financer only with proceeds from the ultimate debt interest; or

if subparagraph (b)(ii) applies—was financed by the conduit borrower only with proceeds from another debt interest that is also a debt interest that satisfies the conditions in this subsection in relation to the ultimate debt interest because of a previous operation of this subsection; and

the terms of the relevant debt interest, to the extent that those terms relate to costs incurred by the borrower in relation to the relevant debt interest, are the same as the terms of the ultimate debt interest, to the extent that those terms relate to such costs incurred by the conduit financer in relation to the ultimate debt interest; and

the conduit financer, the borrower and each conduit borrower (if any) are *Australian entities (see section 820-427E); and

it is not the case that subparagraph 820-46(1)(b)(i) or (ii) applies (fixed ratio test or group ratio test applies) to the conduit financer, the borrower or any conduit borrowers;

disregard the terms of a *debt interest that is:

a relevant debt interest; or

the ultimate debt interest;

disregard the terms (if any) of the ultimate debt interest that have the effect of allowing (whether directly, or indirectly through one or more interposed borrowers) the recovery of reasonable administrative costs that relate directly to the ultimate debt interest; and

disregard the terms (if any) of a relevant debt interest issued to the conduit financer that have the effect of allowing (whether directly, or indirectly through one or more interposed borrowers) the recovery of reasonable administrative costs of the conduit financer that relate directly to the relevant debt interest; and

disregard the terms (if any) of a relevant debt interest, to the extent that those terms have the effect of allowing (whether directly, or indirectly through one or more interposed borrowers) the recovery of costs of the conduit financer that:

are a *debt deduction for the income year of the conduit financer; and

are a debt deduction that is treated as being attributable to the ultimate debt interest under subsection 820-427A(2) because it is directly associated with hedging or managing the interest rate risk in respect of the ultimate debt interest; and

disregard the terms (if any) of a relevant debt interest, to the extent that those terms have the effect of allowing (whether directly, or indirectly through one or more interposed borrowers) the recovery of costs of a borrower that:

are a debt deduction for the income year of the borrower; and

are a debt deduction that is treated as being attributable to another debt interest under subsection 820-427A(2) because it is directly associated with hedging or managing the interest rate risk in respect of that other debt interest.

treat the references in paragraphs 820-905(1)(a) and 820-905(2A)(a) to “an *associate interest of 50% or more” as instead being:

for the purposes of paragraph 820-427A(5)(b)—a reference to “a *TC control interest of 50% or more”; or

for the purposes of any other provision in this Subdivision—a reference to “a *TC control interest of 20% or more”; and

disregard the requirement in subsections 820-905(1) and (2A) that the entity is an *associate of the other entity, unless only paragraph 820-905(1)(b) applies; and

treat subsection 820-860(3) as applying for the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection); and

treat the purposes mentioned in subparagraphs 820-870(1)(b)(i) and (ii) as including the purposes of determining whether the entity is an associate entity of the other entity (as a result of paragraph (a) of this subsection).

(a) treat an entity (the first entity) that has entered into a *cross-staple arrangement with another entity as an associate entity of that other entity; and

(b) if that other entity is itself an associate entity of a conduit financer mentioned in associate entity of the conduit financer.section 820-427C (whether because of another operation of this subsection or otherwise)—treat the first entity as an

(a) for the purposes of paragraph 336(a) of the Income Tax Assessment Act 1936, treat a partnership as being an Australian entity if, at that time, a *direct participation interest of 50% or more is held in the partnership by one or more of the following:

an Australian resident;

an *Australian trust; and

disregard section 337 of that Act.

for that period, the head company satisfies the requirement in subsection 820-46(2); and

no *member of the group is a *financial entity or *ADI at any time during that period.

an outward investing financial entity (non-ADI); or

(a) an entity (the joining entity) becomes a *member of a *consolidated group (the joined group) at a time (the joining time) in an income year (the joining year); and

the joining entity had a *FRT disallowed amount for an income year ending before the joining time.

at the joining time, the joining entity had not become a *member of the joined group (but had been a *wholly-owned subsidiary of the *head company if the joining entity is not the head company); and

the amount applied by the joining entity under paragraph 820-56(2)(b) in respect of the trial year were not limited by the joining entity’s excess mentioned in that paragraph in respect of the trial year.

starting at the latest of the following times:

the time 12 months before the joining time;

the time the joining entity came into existence;

the time the joining entity last ceased to be a *subsidiary member of a *consolidated group, if the joining entity had been a member of a consolidated group before the joining time but was not a *member of a consolidated group just before the joining time; and

ending just after the joining time.

the same business as the business it carried on at a particular time; or

a similar business to the business it carried on at that time;

treat it as having only one FRT disallowed amount for the income year; and

treat that one FRT disallowed amount as being equal to the sum of the transferred FRT disallowed amounts.

apart from this Subdivision, the head company or single company:

would be an *outward investing financial entity (non-ADI) for the trial period; and

at least one of the *Australian permanent establishments is a *permanent establishment through which a *foreign bank carries on banking *business in Australia.

it would be an *outward investing financial entity (non-ADI) for that period; and

at least one of the *Australian permanent establishments is a *permanent establishment of a *foreign entity that is a *financial entity; and

none of the Australian permanent establishments is a permanent establishment through which a *foreign bank carries on banking *business in Australia.

it would be an *inward investing financial entity (non-ADI) and an *inward investment vehicle (financial) for that period; and

it would not be an *outward investing financial entity (non-ADI) for that period; and

at least one of the *Australian permanent establishments is a *permanent establishment of a *foreign entity that is a *financial entity; and

none of the Australian permanent establishments is a permanent establishment through which a *foreign bank carries on banking *business in Australia.

a trustee of a *complying superannuation entity (other than a *self managed superannuation fund);

*wholly-owned subsidiary of a complying superannuation entity (other than a self managed superannuation fund).

contain particulars that have been taken into account in working out the *group ratio; and

be sufficient for a reasonable person to understand how the group ratio has been worked out.

the time by which the entity must lodge its *income tax return for the income year in relation to all or a part of which the amount is worked out;

the time at which the entity lodges its *income tax return for that income year.

the entity is an associate of the other entity;

the other entity is an associate of the entity.

an entity that:

(i) is a registered corporation under the Financial Sector (Collection of Data) Act 2001; and

at the particular time, carries on a *business of providing finance, but not predominantly for the purposes of providing finance directly or indirectly to, or on behalf of, the entity’s associates; and

in the income year in which the particular time occurs, derives all, or substantially all, of its profits from that business;

(aa) a determination under subsection 820-423D(2) of the Income Tax Assessment Act 1997; or

(a) before the commencement of this Part, an entity made a choice set out in item 1 of the table in subsection 820-430(1) of the Income Tax Assessment Act 1997; and

immediately before that commencement, the choice had effect;

(a) Income Tax Assessment Act 1997;Division 820 of the

any other provision of that Act to the extent that it relates to that Division;

any provision in an instrument (whether legislative or administrative) made under that Act to the extent that it relates to that Division.