Document ID: chunk:federal_register_of_legislation:C2004A00898:clause:1_4:p6
Version: federal_register_of_legislation:C2004A00898
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 6/12)
Character Range: 68491–71174

scheme; and
 (ii) any other related scheme that the entity (or company) enters into, participates in or causes another entity to enter into or participate in before the new related scheme is entered into;
  would give rise to an equity interest (or a debt interest) in the company if they all came into existence when the new related scheme is entered into;
this Division applies after the new related scheme is entered into as if all the schemes referred to in paragraph (c) had come into existence when the new related scheme is entered into.

Note 1: This will mean that the characterisation of the interest will change at that time.

Note 2: This section can apply to an interest a number of times so that, for example, an interest that is equity when issued may change to debt because of one subsequent change and then back to equity because of a later change.

Note 3: There will be an adjustment to the company's non‑share capital account when the change occurs (see subsections 164‑15(2) and 164‑20(4)).

All prior changes to be taken into account

 (3) In applying paragraphs (1)(c) and (2)(c) to the *scheme or schemes, take into account:
 (a) all changes to the scheme or schemes that occur before the change or before the new related scheme is entered into; and
 (b) all *related schemes entered into before the change or before the new related scheme is entered into; and
 (c) all changes to related schemes referred to in paragraph (b) that occur before the change or before the new related scheme is entered into.

974‑112  Determinations by Commissioner

Determinations covered by this section

 (1) This section covers a determination by the Commissioner under any of the following provisions:
 (a) subsection 974‑15(4);
 (b) subsection 974‑60(3), (4) or (5);
 (c) section 974‑65;
 (d) subsection 974‑70(4);
 (e) subsection 974‑150(2).

Determination on own initiative or on application

 (2) The Commissioner may make a determination covered by this section:
 (a) on his or her own initiative; or
 (b) on an application made under subsection (3).

Application for determination

 (3) An entity may apply to the Commissioner for a determination covered by this section in relation to:
 (a) an interest of which the entity is the issuer; or
 (b) an interest of which the entity would be the issuer:
 (i) if the determination were made; or
 (ii) if the determination were not made.

Note: Paragraph (b) may apply, for example, if the effect of the determination applied for would be to allow, or to prevent, a number of related schemes giving rise to a debt interest or an equity interest.

 (4) The application:
 (a) must be in writing; and
 (b) must set out the