Private ruling: Capital raising
Published: February 2015
Date scheme commenced: 2014

Ruling: Q1: Will the Instruments be characterised as equity interests under Division 974 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes | Q2: Will the Instruments be subject to the commercial debt forgiveness provisions in Division 245 of the ITAA 1997? | A2: No | Q3: Will distributions paid in respect of the Instruments be frankable distributions within the meaning of section 202-40 of the ITAA 1997? | A3: Yes | Q4: Will section 204-15 of the ITAA 1997 apply to the scheme? | A4: No | Q5: Will section 204-30 of the ITAA 1997 apply to the scheme? | A5: No | Q6: Will section 177EA of the Income Tax Assessment Act 1936 (ITAA 1936) apply to the scheme? | A6: No | Q7: Will the Commissioner make a determination under subsection 45C(3) of the ITAA 1936 in relation to the scheme? | A7: No | Q8: Will a gain or profit be assessable under section 6-5 of the ITAA 1997 in relation to the issue of the Notes or the issue of ordinary shares on conversion or redemption? | A8: No | Q9: Will the issue of the Instrument, or the issue of ordinary shares on conversion or redemption, give rise to CGT event D1 pursuant to section 104-35 of the ITAA 1997? | A9: No | Q10: Will the Company be required to recognise gains and losses under Division 230 of the ITAA 1997 in respect of the Instrument? | A10: No | Q11: Will the share capital account of the Company become tainted, within the meaning of Division 197 of the ITAA 1997, upon the issue of the Instrument, or the issue of ordinary shares on conversion, or upon redemption? | A11: No


Relevant legislative provisions: 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 104-35 | Income Tax Assessment Act 1997 Division 197 | Income Tax Assessment Act 1997 section 204-15 | Income Tax Assessment Act 1997 section 204-30 | Income Tax Assessment Act 1997 section 202-40 | Income Tax Assessment Act 1997 Division 230 | Income Tax Assessment Act 1997 section 245-10 | Income Tax Assessment Act 1997 Division 974