Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:13_15:p4
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 13 cl 15 (pt 4/11)
Character Range: 116875–119518

(7) A *membership interest to which subsection (6) does not apply is a finance membership interest if:
 (a) the manner in which the *distributions payable in respect of the membership interest are calculated, and the conditions applying to the payment of such distributions, indicate that the distributions paid are equivalent to the receipt by the person to whom they are paid of interest or an amount in the nature of or similar to interest; or
 (b) the capital invested by the holder of the membership interest will be redeemed or, because of an *arrangement between the holder and the entity or an *associate of the entity, it is reasonable for the holder to expect that the capital will be redeemed, for an amount that is not less than, or for property (including other membership interests in the entity) the value of which is not less than, the amount paid for the membership interest; or
 (c) the membership interest is redeemable by the entity by payment of a lump sum or by the transfer of property, or the membership interest has a preferred right to a repayment of capital on a winding up, where the amount of the lump sum or the value of the property, or the amount of the capital to be repaid, as the case may be, is to be calculated by reference to an implicit interest rate.
 (8) A *membership interest in an entity is a distribution access membership interest if, having regard to:
 (a) the terms of the issue of the membership interest, including any guarantee of payment of distributions; and
 (b) the amounts of the *distributions paid on the membership interest relative to the issue price of the membership interest; and
 (c) whether there is any guaranteed rate at which *franked distributions are to be paid on the membership interest; and
 (d) the duration of the period within which the membership interest was issued; and
 (e) the rights attached to other membership interests in the entity; and
 (f) any other relevant matters;
it could be concluded that the membership interest was issued only for the purpose of paying distributions to the holder of the membership interest.

208‑35  Accountable partial interests
 (1) The purpose of this section is to identify which *partial interests in an entity are relevant in determining whether the entity is effectively owned by prescribed persons.
 (2) A *partial interest in an entity is an accountable partial interest if it is not an excluded partial interest.
 (3) A *partial interest in an entity is an excluded partial interest if, having regard to:
 (a) the purposes for which the interest was granted; and
 (b) the nature of the interest; and
 (c) any special or