Taxation Determination TD 1999/12







1. No, unless there is a dominant purpose to obtain a tax benefit as outlined in paragraph 177D(b). The application of Part IVA is a question of fact to be determined on a case by case basis. The decision of a company to issue a debenture, and the decision by an investor to acquire the debenture, so as to comply with the requirements of section 128F (rather than to raise, or provide, finance in a way that would result in a liability to interest withholding tax in respect of interest paid) would not attract the application of Part IVA, or a determination by the Commissioner to apply Part IVA, where the dominant purpose of the parties under section 177D is to raise, and provide, finance rather than to avoid the creation of a liability to interest withholding tax. | Commissioner of Taxation 12 May 1999 | Previously released in draft form as TD 1999/D5


Related rulings: TD 1999/8 TD 1999/9 TD 1999/10 TD 1999/11 TD 1999/13 TD 1999/14 TD 1999/15 TD 1999/16 TD 1999/17 TD 1999/18 TD 1999/19 TD 1999/20 TD 1999/21 TD 1999/22 TD 1999/23 TD 1999/24 TD 1999/25 TD 1999/26
Legislative references: 128F Part IVA 177CA 177D 177D(b)