Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128f:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128F (pt 2/7)
Character Range: 1269373–1271972

section to be income that consists of interest; and
 (b) for a debt interest other than a debenture—the debt interest:
 (i) is a non‑equity share; or
 (ii) consists of 2 or more related schemes (within the meaning of the Income Tax Assessment Act 1997) where one or more of them is a non‑equity share; or
 (iii) is a syndicated loan; or
 (iv) is prescribed by the regulations for the purposes of this section; and
 (c) either:
 (i) the issue of the debenture or debt interest satisfies the public offer test set out in subsection (3) or (4); or
 (ii) for a syndicated loan—the invitation to become a lender under the relevant syndicated loan facility satisfies the public offer test set out in subsection (3A);
this section applies to the interest.
Note: Subsection (6) does not apply to the interest because that subsection deals only with interest paid on a debenture or debt interest by the issuing company.

Tax not payable
 (2) Tax is not payable under this Division in respect of interest to which this section applies.

Public offer test
 (3) The issue of a debenture or debt interest by a company satisfies the public offer test if the issue resulted from the debenture or debt interest being offered for issue:
 (a) to at least 10 persons each of whom:
 (i) was carrying on a business of providing finance, or investing or dealing in securities, in the course of operating in financial markets; and
 (ii) was not known, or suspected, by the company to be an associate (see subsection (9)) of any of the other persons covered by this paragraph; or
 (b) to at least 100 persons whom it was reasonable for the company to have regarded as either:
 (i) having acquired debentures or debt interests in the past; or
 (ii) being likely to be interested in acquiring debentures or debt interests; or
 (c) as a result of being accepted for listing on a stock exchange, where the company had previously entered into an agreement with a dealer, manager or underwriter, in relation to the placement of debentures or debt interests, requiring the company to seek such listing; or
 (d) as a result of negotiations being initiated publicly in electronic form, or in another form, that was used by financial markets for dealing in debentures or debt interests; or
 (e) to a dealer, manager or underwriter, in relation to the placement of debentures or debt interests, who, under an agreement with the company, offered the debenture or debt interest for sale within 30 days in a way covered by any of paragraphs (a) to (d).
 (3A) An invitation to become a lender under a syndicated loan facility by a company