Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128a:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128A (pt 2/4)
Character Range: 1211278–1213846

1997 are made having the effect that instruments known as upper tier 2 capital instruments, or a class of instruments of that kind, are debt interests—that is paid on such a debt interest and is not a return of an investment;
but does not include an amount to the extent to which it is a return on an equity interest in a company.
washing arrangement means an arrangement under which the title to a security is transferred to a resident shortly before an interest payment is made where the sole or dominant purpose of the arrangement is to reduce the amount of withholding tax payable by a person.
 (1AC) An example of an amount in the nature of interest is an amount representing a discount on a security.
 (1AD) An example of an amount in substitution for interest is a lump sum payment made instead of payments of interest.
 (1AE) For the purposes of this Division, if a lender assigns a loan, or the right to interest under a loan, any payment from the borrower to the assignee that represents an amount that would have been interest if the assignment had not taken place is taken to be a payment of interest.
 (1AF) For the purposes of this Division, if a person acquires a security, or the right to interest under a security, any payment from the issuer of the security to that person that represents an amount that would have been interest if the acquisition had not taken place is taken to be a payment of interest.
 (1A) Subject to subsection (1B), for the purposes of this subsection and sections 128AA, 128AB, 128AD, 128C, 128NA and 128NBA:
 (a) a reference to the reduced issue price of a security that has been partially redeemed on one or more occasions is a reference to the issue price of the security reduced by the amount of the partial redemption or the sum of the amounts of the partial redemptions, as the case may be;
 (b) expressions used in this subsection or those sections that are also used in Division 16E have the same respective meanings as in that Division; and
 (c) sections 159GV (other than subsection 159GV(2)) and 159GZ apply as if references in those sections to "this Division" were references to "subsection 128A(1A) and sections 128AA, 128AB, 128AD, 128C, 128NA and 128NBA".
 (1B) Subsection (1A) applies as if:
 (a) paragraph (c) of the definition of qualifying security in subsection 159GP(1) were omitted; and
 (b) paragraph (a) of the definition of security in that subsection included a reference to debt interests.
 (2) For the purposes of this Division, interest or a royalty shall be deemed to have been paid by a person