Private ruling: Capital Raising
Published: June 2013

Ruling: The ruling concerned the following: | 1. Will a franking debit arise for the Issuer as a result of the application of section 204-15 of the Income Tax Assessment Act 1997 (ITAA 1997)? | 2. Will the Commissioner make a determination under paragraph 204-30(3)(a) of the ITAA 1997 to give rise to a franking debit for the Issuer in relation to each distribution paid in respect of the equity interest? | 3. Will the Commissioner make a determination under paragraph 177EA(5)(a) of the Income Tax Assessment Act 1936 (ITAA 1936) to give rise to a franking debit for the Issuer in relation to each distribution paid in respect of the equity interest? | Decision | The Commissioner ruled that: | 1. No. Section 204-15 of the ITAA 1997 will not apply to cause a franking debit for the Issuer. | 2. No. The Commissioner will not make a determination under paragraph 204-30(3)(a) of the ITAA 1997 to give rise to a franking debit for the Issuer in relation to each distribution paid in respect of the equity interest. | 3. No. The Commissioner will not make a determination under paragraph 177EA(5)(a) of the ITAA 1936 to give rise to a franking debit for the Issuer in relation to each distribution paid in respect of the equity interest.