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Edited version of your written advice
Authorisation Number: 1012744799068
Ruling
Subject: Capital raising
Question 1
Will the Instruments be characterised as equity interests under Division 974 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes
Question 2
Will the Instruments be subject to the commercial debt forgiveness provisions in Division 245 of the ITAA 1997?
Answer
No
Question 3
Will distributions paid in respect of the Instruments be frankable distributions within the meaning of section 202-40 of the ITAA 1997?
Answer
Yes
Question 4
Will section 204-15 of the ITAA 1997 apply to the scheme?
Answer
No
Question 5
Will section 204-30 of the ITAA 1997 apply to the scheme?
Answer
No
Question 6
Will section 177EA of the Income Tax Assessment Act 1936 (ITAA 1936) apply to the scheme?
Answer
No
Question 7
Will the Commissioner make a determination under subsection 45C(3) of the ITAA 1936 in relation to the scheme?
Answer
No
Question 8
Will a gain or profit be assessable under section 6-5 of the ITAA 1997 in relation to the issue of the Notes or the issue of ordinary shares on conversion or redemption?
Answer
No
Question 9
Will the issue of the Instrument, or the issue of ordinary shares on conversion or redemption, give rise to CGT event D1 pursuant to section 104-35 of the ITAA 1997?
Answer
No
Question 10
Will the Company be required to recognise gains and losses under Division 230 of the ITAA 1997 in respect of the Instrument?
Answer
No
Question 11
Will the share capital account of the Company become tainted, within the meaning of Division 197 of the ITAA 1997, upon the issue of the Instrument, or the issue of ordinary shares on conversion, or upon redemption?
Answer
No
The scheme commences:
2014
Relevant legislative provisions
Income Tax Assessment Act 1936 subsection 45C(3)
Income Tax Assessment Act 1936 section 177EA
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 104-35
Income Tax Assessment Act 1997 Division 197
Income Tax Assessment Act 1997 section 204-15
Income Tax Assessment Act 1997 section 204-30
Income Tax Assessment Act 1997 section 202-40
Income Tax Assessment Act 1997 Division 230
Income Tax Assessment Act 1997 section 245-10
Income Tax Assessment Act 1997 Division 974