New International Tax Arrangements (Managed Funds and Other Measures) Act 2005 (21 of 2005)

Schedule 3   Interest withholding tax

Part 1   Updating certain concepts

Income Tax Assessment Act 1936

24   Subsection 128F(10)

Repeal the subsection, substitute:

Global bond

(10) A debenture or debt interest issued by a company is a global bond if:

(a) it describes itself as a global bond or a global note; and

(b) it is issued to a clearing house (see subsection (9)) or to a person as trustee or agent for, or otherwise on behalf of, one or more clearing houses; and

(c) in connection with the issue, the clearing house or houses:

(i) confer rights in relation to the debenture or debt interest on other persons; and

(ii) record the existence of the rights; and

(d) before the issue:

(i) the company; or

(ii) a dealer, manager or underwriter, in relation to the placement of debentures or debt interests, on behalf of the company;

announces that, as a result of the issue, such rights will be able to be created; and

(e) the announcement is made in a way or ways covered by any of paragraphs (3)(a) to (e) (reading a reference in those paragraphs to "debentures or debt interests" as if it were a reference to such a right, and a reference to the "company" as if it included a reference to the dealer, manager or underwriter); and

(f) under the terms of the debenture or debt interest, interests in the debenture or debt interest are able to be surrendered, whether or not in particular circumstances, in exchange for other debentures or debt interests issued by the company that are not themselves global bonds.