Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128f:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128F (pt 1/7)
Character Range: 1267032–1269600

128F  Division does not apply to interest on certain publicly offered company debentures or debt interests

Interest to which this section applies
 (1) This section applies to interest paid by a company in respect of a debenture or debt interest in the company if:
 (a) the company was a resident of Australia when it issued the debenture or debt interest; and
 (b) the company is a resident of Australia when the interest is paid; and
 (c) 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
 (d) 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).
 (1A) This section also applies to interest paid by a company in respect of a debenture or debt interest in the company if:
 (a) the company was a non‑resident when it issued the debenture or debt interest; and
 (b) the company is a non‑resident when the interest is paid; and
 (c) the debenture or debt interest was issued, and the interest is paid, by the company in carrying on business at or through a permanent establishment in Australia; and
 (d) 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
 (e) 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).
 (1B) If:
 (a) some or all of the transfer price (within the meaning of section 128AA) of a debenture or debt interest is taken under that 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