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.