Taxation Laws Amendment Act (No. 5) 2003 (142 of 2003)
Schedule 2 Thin Capitalisation: amendments taking effect on 1 July 2002
Part 3 Equity interests excluded in working out safe harbour debt amount
Income Tax Assessment Act 1997
34 Subsection 995-1(1) (definition of on issue )
Repeal the definition, substitute:
on issue :
(a) a *debt interest is on issue as provided in paragraph 974-55(1)(e); and
(b) an *equity interest in an entity:
(i) is on issue from when it is issued until it stops being on issue because of subparagraph (ii); and
(ii) stops being on issue when, for reasons other than the economic performance of the entity (or of a *connected entity of the entity), there is no longer a reasonable likelihood that a substantial *financial benefit will be provided in respect of the interest under the *scheme, or under any of the schemes, that give rise to the interest.