Income tax: where a taxpayer has supplied or acquired property under an international agreement and that gives rise to a debt interest or an equity interest as defined for the purposes of Division 974 of the Income Tax Assessment Act 1997, does Division 974 bear upon the characterisation to be adopted for the purposes of the application of Division 13 of Part III of the Income Tax Assessment Act 1936 to the transaction?
Please note that the PDF version is the authorised version of this ruling.There is a Compendium for this document: TD 2008/20EC .This document has changed over time. View its history.
Notice of Withdrawal
1. TD 2008/20 states that where it is relevant to distinguish between debt and equity in the application of Division 13 of Part III of the Income Tax Assessment Act 1936 to a supply or acquisition of property, the characterisation is not affected by Division 974 of the Income Tax Assessment Act 1997, should Division 974 have application to the scheme under consideration. Division 974 provides a test for determining whether an interest is to be treated as a debt interest or an equity interest for particular tax purposes that do not include the application of Division 13.
Commissioner of Taxation
31 October 2018
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