Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The * head company or single company is an outward investing entity (ADI) for a period (the trial period ) that is all or part of the grouping period if:
(a) apart from this Subdivision, the head company or single company would be an * outward investing entity (ADI) for the trial period; or
(b) apart from this Subdivision, the head company or single company:
(i) would be an * outward investing financial entity (non - ADI) for the trial period; and
(ii) at least one of the * Australian permanent establishments is a * permanent establishment through which a * foreign bank carries on banking * business in Australia.
(2) The * head company is also an outward investing entity (ADI) for the trial period if, apart from this Subdivision:
(a) section 820 - 585 would prevent the disallowance of a * debt deduction for the income year including the trial period; or
(b) section 820 - 587 would apply Subdivision 820 - D to the head company as if it were an * outward investing entity (ADI) for the trial period.
(3) The single company is also an outward investing entity (ADI) for the trial period if it is both a * foreign controlled Australian company and an * ADI for that period.
(4) The * head company or single company is an inward investing entity (ADI) for the trial period if:
(a) apart from this Subdivision, it would be an * inward investment vehicle (financial), and not an * outward investing financial entity (non - ADI), for the trial period; and
(b) at least one of the * Australian permanent establishments is a * permanent establishment through which a * foreign bank carries on banking * business in Australia.
(5) The * head company or single company is an outward investing financial entity (non - ADI) for the trial period if, apart from this Subdivision:
(a) it would be an * outward investing financial entity (non - ADI) for that period; and
(b) at least one of the * Australian permanent establishments is a * permanent establishment of a * foreign entity that is a * financial entity; and
(c) none of the Australian permanent establishments is a permanent establishment through which a * foreign bank carries on banking * business in Australia.
(6) The * head company or single company is an inward investing financial entity (non - ADI) and an inward investment vehicle (financial) for the trial period if, apart from this Subdivision:
(a) it would be an * inward investing financial entity (non - ADI) and an * inward investment vehicle (financial) for that period; and
(b) it would not be an * outward investing financial entity (non - ADI) for that period; and
(c) at least one of the * Australian permanent establishments is a * permanent establishment of a * foreign entity that is a * financial entity; and
(d) none of the Australian permanent establishments is a permanent establishment through which a * foreign bank carries on banking * business in Australia.
(7) This section has effect despite any other provision of this Division, except Subdivision 820 - EA and section 820 - 610.
Note: If the head company or single company is an outward investing financial entity (non - ADI) or inward investment vehicle (financial) under this section and satisfies subsection 820 - 430(5), it may choose under Subdivision 820 - EA to be treated as an outward investing entity (ADI). Section 820 - 603 affects whether the company satisfies that subsection, by treating as part of the company each relevant foreign financial entity's Australian permanent establishment.