EZ 32D Value of asset fraction: CFC with excessive debt funding and loan entered before 21 June 2012
When this section applies

(1)

This section applies when a CFC is excessively debt funded under section EX 20D (Adjustment of cost fraction for excessively debt funded CFC) and entered before 21 June 2012 a financial arrangement (an old funding arrangement) that provides funds for the CFC.

(2)

The amount of the item apportioned funding income for the CFC is the sum of—

(a)

an amount calculated using the formula in section EX 20B(4B)(b) (Net attributable CFC income or loss) with—

(i)

a value for the item funding income that is the amount of funding income relating to the old funding arrangements of the CFC; and

(ii)

a value for the item asset fraction that is the amount of the item cost fraction calculated under section EX 20D(10):

(b)

an amount calculated using the formula in section EX 20B(4B)(b) with a value for the item funding income that is the amount of funding income relating to financial arrangements of the CFC that are not old funding arrangements.

Relationship with section EX 20B

(3)

This section overrides section EX 20B(4B)(b).

Defined in this Act: CFC, financial arrangement

Section EZ 32D: inserted (with effect on 30 June 2009), on 2 November 2012 (applying for income years beginning on or after 1 July 2009), by section 64(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section EZ 32D(2)(a): amended (with effect on 30 June 2009 and applying for income years beginning on or after 1 July 2009), on 30 June 2014, by section 99(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EZ 32D(2)(b): amended (with effect on 30 June 2009 and applying for income years beginning on or after 1 July 2009), on 30 June 2014, by section 99(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EZ 32D(3) heading: amended (with effect on 30 June 2009 and applying for income years beginning on or after 1 July 2009), by section 99(2)(a) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EZ 32D(3): amended (with effect on 30 June 2009 and applying for income years beginning on or after 1 July 2009), by section 99(2)(b) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).