Document ID: chunk:federal_register_of_legislation:C2004A00898:clause:1_4:p10
Version: federal_register_of_legislation:C2004A00898
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 10/12)
Character Range: 78733–81424

an *ordinary debt interest.

974‑145  Benchmark rate of return

 (1) The benchmark rate of return for an interest (the test interest) in an entity is the annually compounded internal rate of return on an *ordinary debt interest that:
 (a) is issued, immediately before the test interest is issued, by the entity, or an equivalent entity, to an entity that is not a *connected entity; and
 (b) has a comparable maturity date; and
 (c) is in the same currency; and
 (d) is issued in the same market; and
 (e) has the same credit status; and
 (f) has the same degree of subordination to debts owed to the ordinary creditors of the issuer.

 (2) If there is no interest that satisfies subsection (1), the benchmark rate of return for the test interest is the annually compounded internal rate of return on an interest that is closest to the test interest in the respects referred to in that subsection (adjusted appropriately to take account of the differences between that interest and the test interest).

 (3) The regulations may:
 (a) specify the meaning to be given to an expression used in this section; or
 (b) provide for a different method of determining the *benchmark rate of return.

974‑150  Schemes

 (1) Scheme has the meaning given in section 995‑1.

 (2) The Commissioner:
 (a) may determine that what would otherwise be a single *scheme is to be treated for the purposes of this Division as 2 or more separate schemes; and
 (b) may determine that the schemes are to be taken for the purposes of this Division to not be *related schemes.

 (3) Without limiting subsection 974‑10(5), the Commissioner must, in exercising the power to make a determination under subsection (2), have regard to the following:
 (a) the purpose of the *scheme (considered both as a whole and in terms of its individual components);
 (b) the effects of the scheme and each of its components (considered both as a whole and in terms of its individual components);
 (c) the rights and obligations of the parties to the scheme (considered both as a whole and in relation to its individual components);
 (d) whether the scheme (when considered as a whole or in terms of its individual components) provides the basis for, or underpins, an interest issued to investors with the expectation that the interest can be assigned to other investors;
 (e) whether the scheme (when considered as a whole or in terms of its individual components) comprises a set of rights and obligations issued to investors with the expectation that it can be assigned to other investors;
 (f) any other relevant circumstances.

 (4) The regulations:
 (a) may provide that, in the circumstances specified in the regulations, what