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Edited version of private advice
Authorisation Number: 1051766703712
Date of advice: 22 October 2020
Ruling
Subject: Tier 1 capital raising
Question 1
Will the Instrument be characterised as an 'equity interest' for the purposes of the debt/equity rules in Division 974 of the Income Tax Assessment Act 1997?
Answer
Yes.
Question 2
Will distributions payable in respect of the Instrument constitute frankable distributions under section 202-40 of the Income Tax Assessment Act 1997 and not be unfrankable under section 202-45 of the Income Tax Assessment Act 1997?
Answer
Yes.
Question 3
Will Section 204-30 of the Income Tax Assessment Act 1997 apply to the issue of the Instrument?
Answer
No.
Question 4
Will section 177EA of the Income Tax Assessment Act 1936 apply to the issue of the Instrument?
Answer
No.
This ruling applies for the following periods:
1 July 20XX to 30 June 20XX
The scheme commences on:
Income tax year ending 30 June 20XX
Relevant facts and circumstances
The Entity applied for a private binding ruling in respect of the issue of the Instrument by the Entity for the purpose of raising Tier 1 capital.
Relevant legislative provisions
Income Tax Assessment Act 1997 Division 974
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 1936 Section 177EA