Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 820.585

  (1)   This Division does not disallow any of a * debt deduction for an income year if:

  (a)   the debt deduction is of the * head company of a * consolidated group and the head company satisfies subsection   (2) for that income year; or

  (b)   the debt deduction is an amount incurred by the head company of a consolidated group during a period that is part of that income year, and the head company satisfies subsection   (2) for that period.

  (2)   The * head company satisfies this subsection for a period that is all or part of an income year if, throughout that period:

  (a)   the head company is both a * foreign controlled Australian company and an * ADI (and would also be an ADI apart from Part   3 - 90 (about consolidation of groups)); or

  (b)   the head company:

  (i)   is a * foreign controlled Australian company; and

  (ii)   beneficially owns all the * membership interests in a * member of the group that is both a * foreign controlled Australian entity and an * ADI throughout that period; and

  (iii)   would, apart from Part   3 - 90 (about consolidation of groups), have no other assets and no * debt capital;

unless at least one member of the group would, apart from that Part and this Subdivision, be an * outward investing financial entity (non - ADI) or * outward investing entity (ADI) for all or part of that period.

  (3)   Subsection   (1) does not apply if, at each time in the period mentioned in subsection   (2), all the * ADIs that are * members of the group then are * specialist credit card institutions.