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Edited version of your written advice
Authorisation Number: 1012890149590
Date of advice: 7 October 2015
Ruling
Subject: Debt v equity and interaction with consolidations membership rules
1. Will the Instruments held by the Financiers in the Entity constitute a debt interest for tax purposes pursuant to section 974-15?
2. Will the Instruments held by the Financiers in the Entity constitute a 'membership interest' as defined in section 960-135 for the purposes of section 703-30?
Decision
The Commissioner ruled that:
1. Yes. The Instruments held by the Financiers in the Entity constitute a debt interest for tax purposes pursuant to section 974-15?
2. No. The Instruments held by the Financiers in the Entity do not constitute a 'membership interest' as defined in section 960-135 for the purposes of section 703-30?