Document ID: chunk:federal_register_of_legislation:C2025C00014:section:82sa:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 82SA (pt 1/4)
Character Range: 580177–582641

82SA  Interest on certain convertible notes to be an allowable deduction—where loan made on or after 1 January 1976
 (1) Subject to the succeeding provisions of this section, section 82R does not apply in relation to a convertible note issued by a company where:
 (a) the loan to the company to which the note applies is, under section 82M, to be treated as a new loan or an approved replacement loan for the purposes of this Division;
 (b) the loan was made on or after 1 January 1976;
 (c) the convertible note was issued before the expiration of 2 months after the loan was made; and
 (d) the terms applicable to the convertible note are, at the time the note was issued and at all subsequent times, such that:
 (i) an option is given to the holder or owner of the convertible note (in this Division referred to as the option to convert) to have allotted or transferred to him or her shares in the capital of the company or of another company;
 (ii) no provision is made for the allotting or transferring of shares in the capital of the company or of another company to the holder or owner of the convertible note except in pursuance of the exercise of the option to convert or except in pursuance of a right that, under section 82P, is an approved right relating to the allotting or transfer of bonus shares to the holder or owner of the note;
 (iii) the convertible note would not, but for the option to convert and any right of the kind referred to in subparagraph (ii), be a convertible note;
 (iv) the earliest date on which the option to convert may be exercised is a date not later than 2 years after the date of offer;
 (v) the latest date on which the option to convert may be exercised is a date not later than the maturity date of the loan or, if the date of offer is more than 10 years earlier than the maturity date, a date not later than 10 years after the date of offer;
 (vi) the rate of interest payable in respect of the loan is, subject to subsection (5), the same in respect of all periods occurring before the maturity date of the loan;
 (vii) subject to subsection (6), the obligations and rights of the holder or owner of the convertible note (including, but without limiting the generality of the foregoing, obligations and rights with respect to the amount payable on repayment, redemption or satisfaction of the loan and the terms on which shares are to be allotted or transferred in pursuance of the exercise of the option to convert)