Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 5/30)
Character Range: 7793244–7795905

the right or return that the interest carries is *contingent on aspects of the economic performance of an entity or a part of the entity's activities; or
 (d) the practical insignificance of the right or return that the interest carries being contingent on that performance.

974‑90  Right or return at discretion of company or connected entity
  The regulations may specify circumstances in which a right, or the amount of a return, is to be taken to be at the discretion of a company or a *connected entity of the company.

974‑95  The equity interest
 (1) If a *scheme gives rise to an *equity interest in a company because of an item of the table in subsection 974‑75(1), the equity interest consists of the interest referred to in that item.
 (2) If 2 or more *related schemes give rise to an *equity interest in a company because of an item of the table in subsection 974‑75(1), the equity interest consists of the combination of interests under the schemes that satisfy the requirements of that item.
 (3) Subsection 974‑80(2) also provides that certain interests are *equity interests in a company.
 (4) If the returns on a *non‑share equity interest in a company are payable to 2 or more entities:
 (a) each entity is taken to be the holder of a non‑share equity interest in the company; and
 (b) each entity's non‑share equity interest consists of the interests that:
 (i) constitute the non‑share equity interest; and
 (ii) are held by that entity.
 (5) The company in which an *equity interest exists is taken to be the issuer of the interest.

Subdivision 974‑D—Common provisions

Table of sections
974‑100 Treatment of convertible and converting interests
974‑105 Effect of action taken in relation to interest arising from related schemes
974‑110 Effect of material change
974‑112 Determinations by Commissioner

974‑100  Treatment of convertible and converting interests
 (1) If a *debt interest is an *interest that will or may convert into an *equity interest, the conversion is taken, for the purposes of this Division to give rise to a new interest (and is not treated merely as a continuation of the debt interest).
 (2) If an *equity interest is an *interest that will or may convert into a *debt interest, the conversion is taken, for the purposes of this Division to give rise to a new interest (and is not treated merely as a continuation of the equity interest).

974‑105  Effect of action taken in relation to interest arising from related schemes
 (1) If:
 (a) a *scheme, or schemes, give rise to a *debt interest in an entity or an *equity interest in a company; and
 (b) the entity or company pays a return, or undertakes any other