Private ruling: Additional Tier 1 Capital Raising
Date of advice: 17 September 2018
Published: October 2018

Ruling: Q1: Will the Securities be characterised as ‘non-share equity interests’ for the purposes of the debt/equity rules in Division 974 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. | Q2: Will distributions payable in respect of the Securities constitute frankable distributions under section 202-40 of the ITAA 1997 and not be unfrankable under section 202-45 of the ITAA 1997? | A2: Yes. | Q3: Will section 204-30 of the ITAA 1997 apply to the issue of the Securities or Entity A's previous Additional Tier 1 issuance relative to the issue of other securities? | A3: No. | Q4: Will section 177EA of the Income Tax Assessment Act 1936 (ITAA 1936) apply to the scheme? | A4: No.

Relevant facts and circumstances: Entity B applied for a private binding ruling on behalf of Entity A in respect of the issue of Securities by Entity A for the purpose of raising Additional Tier 1 capital.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 202-40 | Income Tax Assessment Act 1997 section 202-45 | Income Tax Assessment Act 1997 section 204-30 | Income Tax Assessment Act 1997 Division 974 | Income Tax Assessment Act 1936 section 177EA