Tax Laws Amendment (2005 Measures No. 5) Act 2005 (162 of 2005)

Schedule 6   Debt and equity interests

Part 1   Related party at call etc. loans

Income Tax Assessment Act 1997

1   At the end of subsection 164-10(1)

Add:

; or (c) a *debt interest in the company changes at a particular time (the change time ) to an *equity interest in the company because of subsection 974-110(1) or (2); or

(d) the following conditions are satisfied in relation to an interest in the company:

(i) immediately before subsection 974-75(4) ceases to have effect, the interest is taken to be a debt interest in the company because of that subsection;

(ii) the interest is an equity interest in the company at the time (the change time ) that is immediately after that cessation;

(iii) subsection 974-75(6) does not apply to the interest in relation to the income year that includes the change time; or

(e) the following conditions are satisfied in relation to an interest in the company:

(i) subsection 974-75(6) applies to the interest in relation to a particular income year;

(ii) that subsection does not apply to the interest in relation to the next income year;

(iii) the interest is an equity interest in the company at the time (the change time ) that is the start of that next income year.