Document ID: chunk:federal_register_of_legislation:C2004A00898:clause:1_34:p12
Version: federal_register_of_legislation:C2004A00898
Segment Type: clause
Provision Reference: sch 1 cl 34 (pt 12/14)
Character Range: 49382–52188

the Commissioner considers that:
 (a) the scheme would satisfy paragraphs 974‑20(1)(a), (b), (c) and (e); but
 (b) instead of satisfying paragraph 974‑20(1)(d), the scheme would satisfy all the following subparagraphs:
 (i) it is substantially more likely than not that the value of the *financial benefit to be provided by the entity (or a *connected entity of the entity) under the *effectively non‑contingent obligation will be at least equal to the substantial part of the value of the financial benefit received or to be received by the entity (or its connected entity) under the scheme;
 (ii) it is substantially more likely than not that other financial benefits will be provided by the entity (or its connected entity) to one or more entities under the scheme;
 (iii) it is substantially more likely than not that the sum of the values of the financial benefits mentioned in subparagraphs (i) and (ii) will be at least equal to the value of the financial benefit received by the entity (or its connected entity) under the scheme.

 (2) In making the determination, the Commissioner must have regard to the following:
 (a) the difference between the value of the *financial benefit received and the value of the financial benefit to be provided under the *effectively non‑contingent obligation;
 (b) the degree of likelihood of other financial benefits being provided under the *scheme;
 (c) the degree of likelihood of the sum of the value of the financial benefits mentioned in subparagraphs (1)(b)(i) and (ii) being equal to or greater than the value of the financial benefit received under the scheme;
 (d) the particular circumstances surrounding the scheme (including circumstances of the parties to the scheme and their purposes for entering into the scheme).

 (3) If the Commissioner determines under this section that a *scheme gives rise to a *debt interest, the scheme has that effect for all purposes of this Division.

Subdivision 974‑C—Equity interests in companies

Table of sections

974‑70 Meaning of equity interest in a company
974‑75 The test for an equity interest
974‑80 Equity interest arising from arrangement funding return through connected entities
974‑85 Right or return contingent on economic performance
974‑90 Right or return at discretion of company or connected entity
974‑95 The equity interest

974‑70  Meaning of equity interest in a company

Scheme giving rise to equity interest

 (1) A *scheme gives rise to an equity interest in a company if, when the scheme comes into existence:
 (a) the scheme satisfies the equity test in subsection 974‑75(1) in relation to the company because of the existence of an interest; and
 (b) the interest is not characterised as, and does not form part of a larger interest that is characterised as, a *debt interest in the