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Edited version of your private ruling
Authorisation Number: 1012582390572
Ruling
Subject: eligibility for the special purpose entity exemption in section 820-39 of the Income Tax Assessment Act 1997
In order to protect the privacy and commercial in-confidence components of this private ruling the following summary is provided.
The ruling concerned the following:
Does the entity meet the conditions in subsection 820-39(3) of the Income Tax Assessment Act 1997 (ITAA 1997)?
The Commissioner has ruled that:
The entity is established for the purposes of managing some or all the economic risks associated with assets either assumed or created by it.
The entity entered into a financing arrangement that is a scheme that gives rise to debt interests for Australian income tax purposes. The value of debt interests arising under that arrangement is at least 50% of the value of the entity's assets.
On consideration of the facts, including a consideration of legal issues, the Commissioner is satisfied that the entity is an insolvency-remote special purpose entity according to the criteria of an internationally recognised rating agency that are applicable to the entity's circumstances.
Accordingly, the entity will satisfy the conditions in subsection 820-39(3) of the ITAA 1997.
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