Draft Taxation Determination
TD 1999/D16
Income tax: interest withholding tax exemption under section 128F of the Income Tax Assessment Act 1936 - does section 128F apply to debentures under which the yield is determined by a variable indexation factor rather than by being fixed?
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Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 1999/23.
FOI status:
draft only - for commentPreamble
Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office. |
1. Yes. Section 128F applies to any debenture as defined in subsection 128F(9). For the purposes of this section, 'debenture' is given a wider meaning than under subsection 6(1). It includes a promissory note or bill of exchange, in addition to common securities such as debenture stocks, bonds and notes, or any other securities of a company.
2. Accordingly, provided the requirements of 128F are otherwise satisfied, the section applies to structured or indexed notes under which the yield (but not the principal amount) is determined by a variable factor and which may vary by an amount greater than or equal to zero.
Your comments
3. If you wish to comment on this draft Determination, please send your comments promptly by Friday 26 February 1999 to:
Contact officer details have been removed following publication of the final ruling. |
Commissioner of Taxation
27 January 1999
References
ATO references:
NO 97/6464-0; 99/658-1
Related Rulings/Determinations:
TD 1999/D1
TD 1999/D2
TD 1999/D3
TD 1999/D4
TD 1999/D5
TD 1999/D6
TD 1999/D7
TD 1999/D8
TD 1999/D9
TD 1999/D10
TD 1999/D11
TD 1999/D12
TD 1999/D13
TD 1999/D14
TD 1999/D15
TD 1999/D17
TD 1999/D18
TD 1999/D19
Legislative References:
ITAA 6(1)
ITAA 128F
ITAA 128F(9)