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Edited version of private advice
Authorisation Number: 1052224847549
Date of advice: 21 February 2024
Ruling
Subject: Tier 1 capital raising
Question 1
Will the Capital Notes be characterised as 'non-share equity interests' as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes
Question 2
Will Distributions payable in respect of the Capital Notes constitute frankable distributions under section 202-40 of the ITAA 1997 and not be unfrankable under section 202-45 of the ITAA 1997?
Answer
Yes
Question 3
Will section 204-30 of the ITAA 1997 apply to the scheme consisting of the issue of the Capital Notes?
Answer
No
Question 4
Will section 177EA of the Income Tax Assessment Act 1936 (ITAA 1936) apply to the scheme consisting of the issue of the Capital Notes?
Answer
No
This ruling applies for the following period(s):
1 July 20XX to 30 June 20XX
The scheme commences on:
Income tax year ending 30 June 20XX
Relevant facts and circumstances
The Entity applied for a private binding ruling in respect of the issue of the Instrument by the Entity for the purpose of raising Tier 1 capital.
Relevant legislative provisions
Income Tax Assessment Act 1997 Division 974
Income Tax Assessment Act 1997 section 202-40
Income Tax Assessment Act 1997 section 202-45
Income Tax Assessment Act 1997 section 204-30
Income Tax Assessment Act 1936 section 177EA
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