Taxation Laws Amendment Act (No. 1) 2003 (12 of 2003)
Schedule 1 Interest withholding tax exemptions
Income Tax Assessment Act 1936
6 Subsection 128F(5)
Repeal the subsection, substitute:
Issues that always fail the public offer test
(5) The issue of a debenture by a company does not satisfy the public offer test if, at the time of the issue, the company knew, or had reasonable grounds to suspect, that:
(a) the debenture, or an interest in the debenture, was being, or would be, acquired either directly or indirectly by an associate of the company; and
(i) the associate is a non-resident and the debenture or interest was not being, or would not be, acquired by the associate in carrying on a business in Australia at or through a permanent establishment of the associate in Australia; or
(ii) the associate is a resident of Australia and the debenture or interest was being, or would be, acquired by the associate in carrying on a business in a country outside Australia at or through a permanent establishment of the associate in that country; and
(c) the debenture or interest was not being, or would not be, acquired by the associate in the capacity of:
(i) a dealer, manager or underwriter in relation to the placement of the debenture; or
(ii) a clearing house, custodian, funds manager or responsible entity of a registered scheme.
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