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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051357413734

Date of advice: 5 April 2018

Ruling

Subject: Capital Raising

The ruling concerned the following:

to the non-share distribution (as defined under section 974-115 of the ITAA 1997) arising from the cancellation of the Securities by Entity A?

Decision

The Commissioner ruled that:

Relevant facts and circumstances

Entity A sought a Private Binding Ruling in respect of a proposed issuance of a USD denominated hybrid capital instruments called the Securities for the purpose of raising Tier 1 capital. Under the Australian accounting standards, Entity A is required to recognise an embedded derivative as part of this issuance.

Relevant legislative provisions


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