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This edited version has been archived due to the length of time since original publication.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.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your private ruling

Authorisation Number: 1012465762247

Ruling

Subject: Capital Raising

The ruling concerned the following:

    1. Will a franking debit arise for the Issuer as a result of the application of section 204-15 of the Income Tax Assessment Act 1997 (ITAA 1997)?

    2. Will the Commissioner make a determination under paragraph 204-30(3)(a) of the ITAA 1997 to give rise to a franking debit for the Issuer in relation to each distribution paid in respect of the equity interest?

    3. Will the Commissioner make a determination under paragraph 177EA(5)(a) of the Income Tax Assessment Act 1936 (ITAA 1936) to give rise to a franking debit for the Issuer in relation to each distribution paid in respect of the equity interest?

Decision

The Commissioner ruled that:

    1. No. Section 204-15 of the ITAA 1997 will not apply to cause a franking debit for the Issuer.

    2. No. The Commissioner will not make a determination under paragraph 204-30(3)(a) of the ITAA 1997 to give rise to a franking debit for the Issuer in relation to each distribution paid in respect of the equity interest.

    3. No. The Commissioner will not make a determination under paragraph 177EA(5)(a) of the ITAA 1936 to give rise to a franking debit for the Issuer in relation to each distribution paid in respect of the equity interest.


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