Private ruling: Financing arrangement
Published: December 2013

Ruling: In order to protect the privacy and commercial in-confidence components of this private ruling the following summary is provided. | The ruling concerned the following: | 1. Does the entity meet the conditions in subsection 820-39(3) of the Income Tax Assessment Act 1997 ? | The Commissioner has ruled that: | 1. Yes. The entity meets the conditions in subsection 820-39(3) of the Income Tax Assessment Act 1997 . | The entity is established for the purposes of managing some or all the economic risk associated with assets either assumed or created by it, being the recovery of certain receivables. The entity has assumed some or all of the economic risks associated with the underlying receivables since its return is contingent on their recoverability. At least part of the credit risk on the receivables has passed from the original debtor to the entity. | The entity entered into a financing arrangement that is a scheme that gives rise to debt interests for Australian income tax purposes. The value of debt interests arising under that arrangement is at least 50% of the value of the entity's assets. | The entity has been created to be an insolvency-remote special purpose entity by satisfying the criteria of an internationally recognised rating agency that are applicable to the entity's circumstances. On the consideration of the facts, including a consideration of legal issues, the Commissioner is satisfied that the entity an insolvency-remote special purpose entity according to the criteria of an internationally recognised rating agency that are applicable to its circumstances.