Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 820.613

  (1)   This section has effect for the purposes of applying Subdivision   820 - D to the * head company or single company in relation to a period (the test period ) that is all or part of the grouping period.

Note:   Subdivision   820 - D applies to the head company or single company if it is classified as an outward investing entity (ADI) because of section   820 - 609, either alone or in conjunction with a choice made by the company under section   820 - 430.

Adjusted average equity capital

  (2)   The * adjusted average equity capital of the * head company or single company for the test period is increased by the average value, for the period, of the amount worked out under subsection   (3).

Note 1:   In the case of a choice under section   820 - 599, paragraph   820 - 603(4)(b) treats the single company and the relevant Australian permanent establishments as a consolidated group.

Note 2:   To calculate an average value for the purposes of this Division, see Subdivision   820 - G.

  (3)   The amount worked out under this subsection as at a particular day is the total of the amounts worked out under the following paragraphs for each of the establishment entity's * Australian permanent establishments that section   820 - 603 treats as part of the * head company or single company on that day:

  (a)   so much of the establishment entity's * ADI equity capital, at the end of the day, as:

  (i)   is attributable to that Australian permanent establishment; and

  (ii)   has not been allocated to the * OB activities of the entity;

  (b)   the amounts that, as at the end of that day:

  (i)   are made available by the establishment entity to the Australian permanent establishment as loans to it; and

  (ii)   do not give rise to any * debt deductions of the entity for the income year or any other income year.

Note:   The amounts are to be worked out, so far as practicable, on the basis of the information that would be contained in a set of consolidated accounts. See section   820 - 611.

Risk - weighted assets

  (4)   For each of the establishment entity's * Australian permanent establishments that is covered by the choice, the * risk - weighted assets of the * head company or single company include that part of the entity's risk - weighted assets that:

  (a)   is attributable to that Australian permanent establishment; and

  (b)   is not attributable to the entity's * OB activities.