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Edited version of private advice
Authorisation Number: 1012611709963
Ruling
Subject: Issue of convertible redeemable preference shares (RPS)
In order to protect the privacy and commercial in-confidence components of this private binding ruling the following summary is provided:
Question 1
This ruling concerned whether the RPS issued is a debt interests as defined by Division 974 of the Income Tax Assessment Act 1997 (ITAA 1997).
Answer
The Commissioner has ruled on the specific question.
Question 2
This ruling concerned whether the Dividends (including the Unpaid Dividends included in the Redemption Price) deductible under section 230-15 of the ITAA 1997.
Answer
The Commissioner has ruled on the specific question.
Question 3
This ruling concerned whether the Commissioner will make a determination under section 177F of the Income Tax Assessment Act 1936 (ITAA 1936) that a whole or a part of the deduction for the RPS loss shall not be allowable in relation to the relevant income year.
Answer
The Commissioner has ruled on the specific question.