Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 15/20)
Character Range: 3724105–3726800

(i) by itself; or
 (ii) in combination with one or more *schemes that are *related schemes to the scheme under which the interest arises;
  forms part of the ADI's Tier 1 capital either on a solo or consolidated basis (within the meaning of the *prudential standards); and
 (c) the non‑share equity interest is issued at or through a *permanent establishment of the ADI in a *listed country; and
 (d) the funds from the issue of the non‑share equity interest are raised and applied solely for one or more purposes permitted under subsection (2) in relation to the non‑share equity interest.
 (2) The permitted purposes in relation to the *non‑share equity interest (the relevant interest) are the following:
 (a) the purpose of the business of the ADI carried on at or through the permanent establishment other than the transfer of funds directly or indirectly to:
 (i) the Australian head office of the permanent establishment; or
 (ii) any *connected entity of the ADI that is an Australian resident; or
 (iii) a permanent establishment of the ADI, or of a connected entity of the ADI, located in Australia;
 (b) the purpose of redeeming:
 (i) a *debt interest; or
 (ii) a non‑share equity interest;
  that is issued, before the relevant interest is issued, at or through the permanent establishment and is held by a connected entity of the ADI that is an Australian resident;
 (c) the purpose of returning funds to:
 (i) the Australian head office of the permanent establishment; or
 (ii) a permanent establishment of the ADI or of a connected entity of the ADI, located in Australia;
  if the funds are contributed, before the relevant interest is issued, for use in the business of the ADI carried on at or through the permanent establishment.

215‑15  Non‑share dividends are unfrankable if profits are unavailable
 (1) If:
 (a) a *corporate tax entity pays a *non‑share dividend; and
 (b) immediately before the payment, the amount of the *available frankable profits of the entity is nil, or less than nil;
the non‑share dividend is unfrankable.
 (2) If:
 (a) a *corporate tax entity pays a *non‑share dividend that is not one of a number of non‑share dividends paid at the same time; and
 (b) immediately before the payment, the amount of the *available frankable profits of the entity, although greater than nil, are less than the amount of the non‑share dividend;
the entity is taken to have made a frankable distribution equal to the amount of the available frankable profits. The remainder of the dividend is taken to be an unfrankable distribution.
 (3) If:
 (a) a *corporate tax entity pays a *non‑share dividend that is one of a number paid at the same time; and
 (b) immediately