Income Tax Assessment Act 1997

CHAPTER 6 - THE DICTIONARY  

PART 6-1 - CONCEPTS AND TOPICS  

Division 974 - Debt and equity interests  

Subdivision 974-B - Debt interests  

SECTION 974-55   The debt interest and its issue  

974-55(1)  
If a *scheme, or 2 or more *related schemes, give rise to a *debt interest in an entity, the debt interest:


(a) consists of the interest that carries the right to receive a *financial benefit that the entity or a *connected entity has an *effectively non-contingent obligation to provide under the scheme or any of the schemes; and


(b) is taken, subject to section 974-60 , to be a debt interest in the entity; and


(c) is taken to be issued by the entity; and


(d) is issued when the entity (or a connected entity of the entity) first receives a *financial benefit under the scheme or any of the schemes; and


(e) is on issue while an effectively non-contingent obligation of the entity (or a connected entity of the entity) to provide a financial benefit under the scheme or any of the schemes remains unfulfilled.

974-55(2)  
The interest referred to in paragraph (1)(a) may take the form of a proprietary right, a chose in action or any other form.


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