Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If a * debt interest satisfies the conditions in subsection 820 - 427C(1) in relation to an income year, then this section applies in relation to:
(a) that debt interest (the relevant debt interest ); and
(b) the debt interest that is the ultimate debt interest mentioned in subsection 820 - 427C(1) in relation to the relevant debt interest.
Special rules for third party debt conditions--ultimate debt interest and relevant debt interest
(2) In applying section 820 - 427A in relation to the income year, in relation to the relevant debt interest and the ultimate debt interest:
(a) treat the reference in subparagraph 820 - 427A(3)(d)(ii) to * associate entity debt as being a reference to associate entity debt other than:
(i) a debt interest that satisfies the conditions in subsection 820 - 427C(1) in relation to the ultimate debt interest; or
(ii) 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
(b) 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.
Special rules for third party debt conditions--relevant debt interest
(3) In applying subsection 820 - 427A(3) in relation to the income year, in relation to the relevant debt interest, in addition to applying subsection (2) of this section:
(a) treat the conditions in paragraphs 820 - 427A(3)(a) and (b) as being satisfied; and
(b) 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.