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Edited version of private advice
Authorisation Number: 1052040610555
Date of advice: 5 October 2022
Ruling
Subject: Tier 1 capital raising
Question 1
Will each Security be characterised as a non-share equity interest in the Entity as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997?
Answer
Yes
Question 2
Will Distributions paid by the Entity on the Securities be frankable distributions under section 202-40 of the Income Tax Assessment Act 1997?
Answer
Yes
Question 3
Will section 204-15 of the Income Tax Assessment Act 1997 apply to the Transaction?
Answer
No
Question 4
Will section 204-30 of the Income Tax Assessment Act 1997 apply to the Transaction?
Answer
No
Question 5
Will section 177EA of the Income Tax Assessment Act 1936 apply to the Transaction?
Answer
No
Question 6
Will the Commissioner make a determination under subsection 45C(3) of the Income Tax Assessment Act 1936 in relation to the Transaction, including the payment of Distributions or a Conversion, Redemption or Resale?
Answer
No
Question 7
Will the Securities be subject to the commercial debt forgiveness provisions in Division 245 of the Income Tax Assessment Act 1997?
Answer
No
Question 8
Will a gain or profit be assessable under section 6-5 of the Income Tax Assessment Act 1997 for the Entity in relation to the issue of Securities or the issue of Ordinary Shares on Conversion, or on Redemption?
Answer
No
Question 9
Will the issue of Securities or the issue of Ordinary Shares on Conversion or Redemption give rise to CGT event D1 pursuant to section 104-35 of the Income Tax Assessment Act 1997?
Answer
No
Question 10
Will the Entity be required to recognise gains and losses under Division 230 of the Income Tax Assessment Act 1997 in relation to the Securities?
Answer
No
Question 11
Will the share capital account of the Entity become tainted, within the meaning of Division 197 of the Income Tax Assessment Act 1997, by an issue of Securities or Ordinary Shares on Conversion, or on Redemption?
Answer
No
Relevant facts and circumstances
The Entity applied for a private ruling in respect of the issue of the Securities by the Entity for the purpose of raising Tier 1 Capital.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 45
Income Tax Assessment Act 1936 section 45B
Income Tax Assessment Act 1936 subsection 45C(3)
Income Tax Assessment Act 1936 section 177EA
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 6-10
Income Tax Assessment Act 1997 Division 197
Income Tax Assessment Act 1997 section 202-30
Income Tax Assessment Act 1997 section202-40
Income Tax Assessment Act 1997 section 202-45
Income Tax Assessment Act 1997 section 204-15
Income Tax Assessment Act 1997 section 204-30
Income Tax Assessment Act 1997 Division 230
Income Tax Assessment Act 1997 Division 245
Income Tax Assessment Act 1997 Division 974
Income Tax Assessment Act 1997 subsection 995-1(1)