Taxation Laws Amendment Act (No. 2) 1999 (93 of 1999)

Schedule 1   Australia as a regional financial centre

Part 1   OBUs, withholding tax and thin capitalisation

Income Tax Assessment Act 1936

29   Subsection 128F(5)

Repeal the subsection, substitute:

Issues that always fail the public offer test

(5) The issue of a debenture by a company does not satisfy the public offer test if, at the time of the issue, the company knew, or had reasonable grounds to suspect that the debenture, or an interest in the debenture, was being, or would later be, acquired either directly or indirectly by an associate of the company other than in the capacity of a dealer, manager or underwriter in relation to the placement of the debenture.

No exemption for central borrowing authorities

(5A) This section does not apply in relation to a debenture issued in Australia by a company that is covered by subsection (7) or is a central borrowing authority of a State or Territory. A central borrowing authority is a body established for the purpose of raising finance for the State or Territory. The following are examples of central borrowing authorities:

(a) the Tasmanian Public Finance Corporation;

(b) the Queensland Treasury Corporation;

(c) the South Australian Government Financing Authority;

(d) the Western Australian Treasury Corporation;

(e) the New South Wales Treasury Corporation;

(f) the Treasury Corporation of Victoria;

(g) the Northern Territory Treasury Corporation.