INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
(a) the loan was raised outside Australia;
(b) if the loan was raised by the issue of bearer debentures, the debentures were issued outside Australia by a company, the loan was raised in a currency other than the currency of Australia and the interest is or was paid outside Australia in a currency other than the currency of Australia; and
(c) the Commissioner has issued a certificate under section 128H in respect of the loan.
Tax is not payable, and shall be deemed not to have been payable, in accordance with this Division in respect of interest to which this section applies.128G(3) [Interest under contract entered into post-19 May 1983]
This section does not apply to interest paid on or after the date of commencement of this subsection in respect of a loan raised in pursuance of a contractual obligation entered into on or after 20 May 1983.
This section does not apply to interest paid after the date of commencement of this subsection in respect of a loan raised pursuant to a contractual obligation entered into before 20 May 1983 to the extent to which:
(a) the interest is paid in respect of loan money that:
(i) was borrowed by the borrower after 1 July 1986; and
(ii) before 2 July 1986, the borrower was not under a contractual obligation to borrow;
(b) the interest is paid in respect of a loan resulting from a roll-over , after 1 July 1986, of the whole or a part of a previous loan; or
(c) the interest is paid in respect of a period of extension of the period for which loan money was lent, being an extension occurring after 1 July 1986.