Private ruling: Capital Raising
Date of advice: 4 April 2019
Published: May 2019

Ruling: 1. Will each Note be treated as a non-share equity interest (as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997)) for the purposes of Division 974 of the ITAA 1997? | Answer: Yes | 2. Will the Distributions made on the Notes be frankable non-share dividends within the meaning of sections 202-30 and 202-40 of the ITAA 1997? | Answer: Yes | 3. Will a franking debit arise as a result of the application of the linked distribution provisions in section 204-15 of the ITAA 1997? | Answer: No | 4. Will the Commissioner make a determination under paragraph 204-30(3)(a) of the ITAA 1997 to give rise to a franking debit to the Issuer in relation to distributions paid in respect of the Notes? | Answer: No | 5. Will the Commissioner make a determination under paragraph 177EA(5)(a) of the Income Tax Assessment Act 1936 (ITAA 1936) to give rise to a franking debit for the Issuer in relation to Distributions paid in respect of the Notes? | Answer: No | 6. Will the Commissioner make a determination under subsection 45C(3) of the ITAA 1936 in relation to the transaction? | Answer: No | 7. Will the Notes be subject to the commercial debt forgiveness provisions in Division 245 of the ITAA 1997? | Answer: No | 8. Will an assessable profit or gain arise for the Issuer in relation to the issue of the Notes, the issue of Ordinary Shares on Exchange, or Redemption? | Answer: No | 9. Will the Issuer be required to recognise gains and losses under Division 230 of the ITAA 1997 in relation to the Notes? | Answer: No | 10. Will the share capital account of the Issuer become tainted within the meaning of Division 197 of the ITAA 1997 upon the issue of the Notes, by the issue of Ordinary Shares on Exchange, or Redemption? | Answer: No

Relevant facts and circumstances: Issuer applied for a private binding ruling in respect of the issue of Notes for the purpose of raising Additional Tier 1 capital.