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Edited version of your written advice
Authorisation Number: 1051327243384
Date of advice: 16 January 2018
Ruling
Subject: Additional Tier 1 Capital Raising
Question 1
Will the Securities be characterised as ‘non-share equity interests’ for the purposes of the debt/equity rules in Division 974 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
Question 2
Will distributions payable in respect of the Securities constitute frankable distributions under section 202-40 of the ITAA 1997 and not be unfrankable under section 202-45 of the ITAA 1997?
Answer
Yes.
Question 3
Will section 204-30 of the ITAA 1997 apply to the issue of the Securities or Entity A's previous Additional Tier 1 issuance relative to the issue of the Securities?
Answer
No.
Question 4
Will section 177EA of the Income Tax Assessment Act 1936 (ITAA 1936) apply to the scheme?
Answer
No
Relevant facts and circumstances
Entity B applied for a private binding ruling on behalf of Entity A in respect of the issue of Securities by Entity A for the purpose of raising Additional Tier 1 capital.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 202-40
Income Tax Assessment Act 1997 section 202-45
Income Tax Assessment Act 1997 section 204-30
Income Tax Assessment Act 1997 Division 974
Income Tax Assessment Act 1936 section 177EA