Private ruling: Debt v equity and interaction with consolidations membership rules
Date of advice: 7 October 2015
Published: November 2015

Ruling: 1. Will the Instruments held by the Financiers in the Entity constitute a debt interest for tax purposes pursuant to section 974-15? | 2. Will the Instruments held by the Financiers in the Entity constitute a 'membership interest' as defined in section 960-135 for the purposes of section 703-30? | Decision | The Commissioner ruled that: | 1. Yes. The Instruments held by the Financiers in the Entity constitute a debt interest for tax purposes pursuant to section 974-15? | 2. No. The Instruments held by the Financiers in the Entity do not constitute a 'membership interest' as defined in section 960-135 for the purposes of section 703-30?