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Edited version of your private ruling
Authorisation Number: 1012444967248
Ruling
Subject: Structured finance arrangement
Question 1
Are the ordinary shares equity interests pursuant to section 974-70 of the Income Tax Assessment Act 1997 ('ITAA 1997')?
Answer
Yes
Question 2
Are the Class B shares equity interests pursuant to section 974-70 of the ITAA 1997?
Answer
Yes
Question 3
Will Company Y be a subsidiary member of the tax consolidated group pursuant to Division 703 of the ITAA 1997 from the time company X is entitled to be registered as the holder of the ordinary shares under the Company B and Company X Ordinary Share Sale Agreement and the Class B Shares under the Company X Repo, until the time Company B is entitled to be registered as the holder of the ordinary shares under the share options or the Class B Shares under the Company X Repo?
Answer
Yes
Question 4
Will the cost base of the Class B Shares under sections 110-25 and 112-20 of the ITAA 1997 be equal to the Purchase Price paid by Company X to acquire them?
Answer
Yes
Question 5
Is Company X required to withhold an amount from interest paid by Company X to Company B under the Company X Deposit, pursuant to Subdivision 12-F of Schedule 1 to the Taxation Administration Act 1953 ('TAA')
Answer
No
Question 6
Is Company X required to withhold an amount from a Payment Amount made by Company X to Company B under the Company X Repo, pursuant to Subdivision 12-F of Schedule 1 to the Taxation Administration Act 1953 ('TAA')?
Answer
No
Question 7
Will the Commissioner be authorised to make a determination in relation to the Transaction under section 177F of the Income Tax Assessment Act 1936 (ITAA 1936) that a tax benefit has been or will be obtained by Company Z (as the head company of the Company Z tax consolidated group in connection with a scheme to which Part IVA of the ITAA 1936 applies?
Answer
No
Question 8
Will the Commissioner make a determination under section 177EB of the ITAA 1936 that no franking credit is to arise in Company Z's franking account because of Company Y becoming a subsidiary member of the Company Z tax consolidated group?
Answer
No
This ruling applies for the following periods:
Year ending XX /XX/ XXXX
Year ending XX /XX/ XXXX
Year ending XX /XX/ XXXX
Year ending XX /XX/ XXXX
Year ending XX /XX/ XXXX
Year ending XX /XX/ XXXX
Year ending XX /XX/ XXXX
Year ending XX /XX/ XXXX
The scheme commences on:
Year ending XX /XX / XXXX
Relevant facts and circumstances
The taxpayer applied for a private binding ruling in relation to a financial transaction.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 177EB
Income Tax Assessment Act 1936 section 177F
Income Tax Assessment Act 1997 section 110-25
Income Tax Assessment Act 1997 section 112-20
Income Tax Assessment Act 1997 Division 703
Income Tax Assessment Act 1997 section 974-70
Taxation Administration Act 1953 schedule 1, Subdivision12-F