FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993

PART 3 - INCOME TAX RELIEF FOR TRANSFERS  

Division 7 - Interest withholding tax  

SECTION 23   EXEMPTION FROM INTEREST WITHHOLDING TAX  

23(1)   [Application of interest on debentures provisions]  

In addition to its effect apart from this section, section 128F of the Income Tax Assessment Act 1936 also has the effect it would have if the change set out in subsection (2) of this section were made.

23(2)   [Conditions for exemption modified]  

The change is that paragraphs (1)(a) and (b) of section 128F of the Income Tax Assessment Act 1936 (being that section in the form that applies under item 16 of Schedule 5 to the Taxation Laws Amendment Act (No. 2) 1997 ) are to be replaced by the following paragraphs:

" (a) the liability to pay the interest was transferred to the company by another company (the ' transferor ' );

(b) the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 applies to the transfer;

(c) before the transfer, this section applied to interest paid by the transferor in discharge of the liability;

(ca) the transferor issued the debentures or debt interests; " .