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Edited version of your written advice
Authorisation Number: 1051429225068
Date of advice: 13 September 2018
Ruling
Subject: Capital raising
Will each Instrument be treated as a non-share equity interest (as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997)) in the Entity by virtue of the operation of Division 974 of the ITAA 1997?
Answer
Yes.
Question 2
Will the Distributions made by the Entity on Instrument be frankable non-share dividends within the meaning given by section 202-40 of the ITAA 1997?
Answer
Yes.
Question 3
Will section 204-15 of the ITAA 1997 apply to the Transaction?
Answer
No.
Question 4
Will section 204-30 of the ITAA 1997 apply to the Transaction?
Answer
No.
Question 5
Will section 177EA of the Income Tax Assessment Act 1936 (ITAA 1936) apply to the Transaction?
Answer
No.
Question 6
Will the Commissioner of Taxation make a determination under subsection 45C(3) of the ITAA 1936 in relation to the Transaction?
Answer
No.
Question 7
Is the Instrument subject to the commercial debt forgiveness provisions in Division 245 of the ITAA 1997?
Answer
No.
Question 8
Will the issue of the Instrument, the issue of Ordinary Shares on Exchange or the repayment of Face Value upon Early Redemption result in the Entity being subject to an assessable profit or gain under sections 6-5 or 6-10 of the ITAA 1997?
Answer
No.
Question 9
Will the Entity be required to recognise gains or losses under Division 230 of the ITAA 1997 in relation to the Instrument?
Answer
No.
Question 10
Will the share capital account of the Entity become tainted, within the meaning of Division 197 of the ITAA 1997, by an issue of the Instruments or Ordinary Shares on Exchange?
Answer
No.