Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128f:p5
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128F (pt 5/7)
Character Range: 1276493–1279153

(7) This section applies in relation to a debenture or debt interest issued by:
 (a) the Commonwealth, a State or a Territory; or
 (b) an authority of the Commonwealth, of a State or of a Territory;
as if the Commonwealth, State, Territory or authority were a company and a resident of Australia.

Debentures or debt interests issued through certain non‑resident subsidiaries can also get the exemption
 (8) If:
 (a) a company (the parent company) beneficially owns all of the issued equity interests in the capital of a company (the subsidiary) that is not a resident of Australia; and
 (b) the subsidiary's only business is raising finance for the purposes of the parent company; and
 (c) the subsidiary raises finance in the United States of America or in another country specified in the regulations (but not Australia) by issuing a debenture or debt interest in that country; and
 (d) when the debenture or debt interest is issued, the subsidiary is treated as a resident of that country for the purposes of the tax law (see subsection (9)) of the country;
then this section has effect as if the parent company had raised the finance and issued the debenture or debt interest.

Definitions
 (9) In this section:
associate has the meaning given by section 318, except that paragraphs (1)(b), (2)(a) and (4)(a) of that section must be disregarded.
clearing house means a person who operates a facility that is used by financial markets for investing in or dealing in securities.
company includes a company in the capacity of trustee of a resident trust estate if:
 (a) the trust is not a charity; and
 (b) the only person who is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust is a company other than a company in the capacity of trustee.
debenture, without affecting its meaning elsewhere in this Act, includes a promissory note or a bill of exchange (in addition to the things mentioned in the definition of debenture in subsection 6(1)).
global bond has the meaning given by subsection (10).
registered scheme has the same meaning as in the Corporations Act 2001.
responsible entity, of a registered scheme, has the same meaning as in the Corporations Act 2001.
syndicated loan means a loan or other form of financial accommodation that is provided under a syndicated loan facility, being a facility that has 2 or more lenders.
syndicated loan facility has the meaning given by subsections (11), (12) and (13).
tax law, in relation to a country other than Australia, means:
 (a) if the country has federal foreign tax—the law of the country that imposes the federal foreign tax; or
 (b) in any other