| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1012516292398
Ruling
Subject: Financing arrangement
In order to protect the privacy and commercial in-confidence components of this private ruling the following summary is provided.
The ruling concerned the following:
1. Will the Ordinary Shares issued by Company A give rise to equity interests in Company A under subsection 974-70(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?
2. Will the Preference Shares issued by Company A give rise to equity interests in Company A under subsection 974-70(1) of the ITAA 1997?
3. Will the Loan Notes issued by Company A give rise to debt interests in Company A under subsection 974-15(1) of the ITAA 1997?
4. Are the Ordinary Shares, Non-Voting Ordinary Shares, Preference Shares and/or Loan Notes related schemes for the purposes of section 974-155 of the ITAA 1997?
5. If the Preference Shares and Loan Notes are related schemes for the purposes of section 974-155 of the ITAA 1997, do the constituent schemes (being the Preference Shares and Loan Notes) together give rise to a debt interest in Company A pursuant to subsection 974-15(2) of the ITAA 1997?
6. If the Preference Shares and Loan Notes are related schemes for the purposes of section 974-155 of the ITAA 1997, do the constituent schemes (being the Preference Shares and Loan Notes) together give rise to an equity interest in Company A pursuant to subsection 974-70(2) of the ITAA 1997?
The Commissioner has ruled that:
1. Yes. The Ordinary Shares issued by Company A are equity interests in Company A under subsection 974-70(1) of the ITAA 1997.
2. Yes. The Preference Shares issued by Company A are equity interests in Company A under subsection 974-70(1) of the ITAA 1997.
3. Yes. The Loan Notes issued by Company A are debt interests in Company A under subsection 974-15(1) of the ITAA 1997.
4. Yes. The Ordinary Shares, Non-Voting Ordinary Shares, Preference Shares and/or Loan Notes are related schemes for the purposes of section 974-155 of the ITAA 1997.
5. No. Although the Preference Shares and Loan Notes are related schemes for the purposes of section 974-155 of the ITAA 1997, the constituent schemes (being the Preference Shares and Loan Notes) together do not give rise to a debt interest in Company A pursuant to subsection 974-15(2) of the ITAA 1997.
6. No. Although the Preference Shares and Loan Notes are related schemes for the purposes of section 974-155 of the ITAA 1997, the constituent schemes (being the Preference Shares and Loan Notes) together do not give rise to an equity interest in Company A pursuant to subsection 974-70(2) of the ITAA 1997.