INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 247 - Capital protected borrowings  

Operative provisions  

SECTION 247-15   Application of this Division  

247-15(1)  
This Division applies to a *capital protected borrowing only if the protected thing is a beneficial interest in:


(a) a *share, a unit in a unit trust or a stapled security; or


(b) an entity that holds a beneficial interest in a share, unit in a unit trust or stapled security either directly, or indirectly through one or more interposed entities.

247-15(2)  
This Division applies only to borrowers under *capital protected borrowings.

247-15(3)  


This Division does not apply to a *capital protected borrowing if:


(a) an *ESS interest is acquired under the borrowing; and


(b) Subdivision 83A-B or 83A-C (about employee share schemes) applies to the ESS interest.

247-15(4)  
This Division does not apply to a *capital protected borrowing entered into before 1 July 2007 (except to the extent that it is extended on or after that day) unless the *share, unit in a unit trust or stapled security is listed for quotation in the official list of an *approved stock exchange.

247-15(5)  
This Division does not apply to a *capital protected borrowing entered into on or after 1 July 2007 if:


(a) the protected thing is a beneficial interest in:


(i) a *share, unit or stapled security that is not listed for quotation in the official list of an *approved stock exchange; or

(ii) an entity that holds a beneficial interest in a share, unit in a unit trust or stapled security either directly, or indirectly through one or more interposed entities, that is not so listed; and


(b) one of these conditions is satisfied:


(i) for a non-listed share - the company is not a *widely held company;

(ii) for a non-listed unit - the trust is not a widely held unit trust as defined in section 272-105 in Schedule 2F to the Income Tax Assessment Act 1936 ;

(iii) for a non-listed stapled security - any company involved is not a widely held company and any trust involved is not such a widely held unit trust.

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