Private ruling: Financing arrangement
Published: October 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. Will the Ordinary Shares issued by Company A give rise to equity interests in Company A under subsection 974-70(1) of the Income Tax Assessment Act 1997 (ITAA 1997)? | 2. Will the Preference Shares issued by Company A give rise to equity interests in Company A under subsection 974-70(1) of the ITAA 1997? | 3. Will the Loan Notes issued by Company A give rise to debt interests in Company A under subsection 974-15(1) of the ITAA 1997? | 4. Are the Ordinary Shares, Non-Voting Ordinary Shares, Preference Shares and/or Loan Notes related schemes for the purposes of section 974-155 of the ITAA 1997? | 5. If the Preference Shares and Loan Notes are related schemes for the purposes of section 974-155 of the ITAA 1997, do the constituent schemes (being the Preference Shares and Loan Notes) together give rise to a debt interest in Company A pursuant to subsection 974-15(2) of the ITAA 1997? | 6. If the Preference Shares and Loan Notes are related schemes for the purposes of section 974-155 of the ITAA 1997, do the constituent schemes (being the Preference Shares and Loan Notes) together give rise to an equity interest in Company A pursuant to subsection 974-70(2) of the ITAA 1997? | The Commissioner has ruled that: | 1. Yes. The Ordinary Shares issued by Company A are equity interests in Company A under subsection 974-70(1) of the ITAA 1997. | 2. Yes. The Preference Shares issued by Company A are equity interests in Company A under subsection 974-70(1) of the ITAA 1997. | 3. Yes. The Loan Notes issued by Company A are debt interests in Company A under subsection 974-15(1) of the ITAA 1997. | 4. Yes. The Ordinary Shares, Non-Voting Ordinary Shares, Preference Shares and/or Loan Notes are related schemes for the purposes of section 974-155 of the ITAA 1997. | 5. No. Although the Preference Shares and Loan Notes are related schemes for the purposes of section 974-155 of the ITAA 1997, the constituent schemes (being the Preference Shares and Loan Notes) together do not give rise to a debt interest in Company A pursuant to subsection 974-15(2) of the ITAA 1997. | 6. No. Although the Preference Shares and Loan Notes are related schemes for the purposes of section 974-155 of the ITAA 1997, the constituent schemes (being the Preference Shares and Loan Notes) together do not give rise to an equity interest in Company A pursuant to subsection 974-70(2) of the ITAA 1997.