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Edited version of your written advice
Authorisation Number: 1012986153977
Date of advice: 23 March 2016
Ruling
Subject: Corporate restructure
Question 1
Will the interest payments be deductible under section A of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes
Question 2
Will the Commissioner make a determination under section B of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
No
Question 3
Will the Commissioner make a determination under section C of the ITAA 1936?
Answer
No
Relevant facts and circumstances
Company A has some assets.
Company A wants to protect those assets.
Company A proposes to establish Company B and C for the purposes of holding those assets.
Company B (head company) and C (subsidiary member) will form a consolidated group, BC Consolidated Group.
Post consolidations, the assets of Company A will reside in Company C.
Detailed Reasoning
Question 1
The taxpayer satisfied all of the relevant requirements of section A of the Income Tax Assessment Act 1997 (ITAA 1997)?
Question 2
The taxpayer did not satisfy all of the relevant requirements of section B of the Income Tax Assessment Act 1936 (ITAA 1936)
Question 3
The taxpayer did not satisfy all of the relevant requirements of section C of the ITAA 1936