Private ruling: Capital raising
Date of advice: 7 October 2019
Published: November 2019

Ruling: Q1: 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? | A1: Yes. | Q2: Will the Distributions made by the Entity on Instrument be frankable non-share dividends within the meaning given by section 202-30 and section 202-40of the ITAA 1997? | A2: Yes. | Q3: Will section 204-15 of the ITAA 1997 apply to the Transaction? | A3: No. | Q4: Will section 204-30 of the ITAA 1997 apply to the Transaction? | A4: No. | Q5: Will section 177EA of the Income Tax Assessment Act 1936 (ITAA 1936)apply to the Transaction? | A5: No. | Q6: Will the Commissioner make a determination under subsection 45C(3) of the ITAA 1936 in relation to the Transaction, including the payment of Distributions or an Exchange, Redemption or Resale? | A6: No. | Q7: Is the Instrument subject to the commercial debt forgiveness provisions in Division 245 of the ITAA 1997? | A7: No. | Q8: 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? | A8: No. | Q9: Will the Entity be required to recognise gains or losses under Division 230 of the ITAA 1997 in relation to the Instrument? | A9: No. | Q10: 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? | A10: No.

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 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 section 202-40 | 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 section 207-145 | Income Tax Assessment Act 1997 section 207-158 | 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)