Private ruling: Structured finance arrangement
Published: April 2013
Ruling period: Year ending XX /XX/ XXXX | Year ending XX /XX/ XXXX | Year ending XX /XX/ XXXX | Year ending XX /XX/ XXXX | Year ending XX /XX/ XXXX | Year ending XX /XX/ XXXX | Year ending XX /XX/ XXXX | Year ending XX /XX/ XXXX
Date scheme commenced: Year ending XX /XX / XXXX

Ruling: Q1: Are the ordinary shares equity interests pursuant to section 974-70 of the Income Tax Assessment Act 1997 ('ITAA 1997')? | A1: Yes | Q2: Are the Class B shares equity interests pursuant to section 974-70 of the ITAA 1997? | A2: Yes | Q3: Will Company Y be a subsidiary member of the tax consolidated group pursuant to Division 703 of the ITAA 1997 from the time company X is entitled to be registered as the holder of the ordinary shares under the Company B and Company X Ordinary Share Sale Agreement and the Class B Shares under the Company X Repo, until the time Company B is entitled to be registered as the holder of the ordinary shares under the share options or the Class B Shares under the Company X Repo? | A3: Yes | Q4: Will the cost base of the Class B Shares under sections 110-25 and 112-20 of the ITAA 1997 be equal to the Purchase Price paid by Company X to acquire them? | A4: Yes | Q5: Is Company X required to withhold an amount from interest paid by Company X to Company B under the Company X Deposit, pursuant to Subdivision 12-F of Schedule 1 to the Taxation Administration Act 1953 ('TAA') | A5: No | Q6: Is Company X required to withhold an amount from a Payment Amount made by Company X to Company B under the Company X Repo, pursuant to Subdivision 12-F of Schedule 1 to the Taxation Administration Act 1953 ('TAA')? | A6: No | Q7: Will the Commissioner be authorised to make a determination in relation to the Transaction under section 177F of the Income Tax Assessment Act 1936 (ITAA 1936) that a tax benefit has been or will be obtained by Company Z (as the head company of the Company Z tax consolidated group in connection with a scheme to which Part IVA of the ITAA 1936 applies? | A7: No | Q8: Will the Commissioner make a determination under section 177EB of the ITAA 1936 that no franking credit is to arise in Company Z's franking account because of Company Y becoming a subsidiary member of the Company Z tax consolidated group? | A8: No

Relevant facts and circumstances: The taxpayer applied for a private binding ruling in relation to a financial transaction.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 177EB | Income Tax Assessment Act 1936 section 177F | Income Tax Assessment Act 1997 section 110-25 | Income Tax Assessment Act 1997 section 112-20 | Income Tax Assessment Act 1997 Division 703 | Income Tax Assessment Act 1997 section 974-70 | Taxation Administration Act 1953 schedule 1, Subdivision12-F