New International Tax Arrangements (Managed Funds and Other Measures) Act 2005 (21 of 2005)

Schedule 3   Interest withholding tax

Part 2   Interests that are debt interests under the regulations

Income Tax Assessment Act 1936

45   Subsection 128A(1AB) (after paragraph (d) of the definition of interest )

Insert:

or (e) if regulations under the Income Tax Assessment Act 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;