Draft Taxation Determination

TD 2007/D16W - Notice of Withdrawal

Income tax: can section 177EA of the Income Tax Assessment Act 1936 apply to the issue of 'dollar value' convertible notes of the type described in this Taxation Determination?

• Please note that the PDF version is the authorised version of this withdrawal notice.

Draft Taxation Determination TD 2007/D16 is withdrawn with effect from today.

1. Draft Taxation Determination TD 2007/D16 considered the potential application of section 177EA of the Income Tax Assessment Act 1936 to a particular type of convertible note that has certain features, including a 'dollar value' conversion mechanism (that are explained in the draft Determination).

2. TD 2007/D16 is being replaced by TR 2008/D8. To the extent that our views in TD 2007/D16 still apply, they have been incorporated into TR 2008/D8 which issued today.

References

ATO references:
NO 2007/13976

Related Rulings/Determinations:

TD 2007/D16

Subject References:
convertible interest
equity interest

Legislative References:
ITAA 1936 Pt IVA
ITAA 1936 177D(b)(i)
ITAA 1936 177D(b)(ii)
ITAA 1936 177D(b)(vi)
ITAA 1936 177D(b)(vii)
ITAA 1936 177EA
ITAA 1936 177EA(5)
ITAA 1936 177EA(12)
ITAA 1936 177EA(14)
ITAA 1936 177EA(17)
ITAA 1936 177EA(17)(a)
ITAA 1936 177EA(17)(f)
ITAA 1936 177EA(17)(h)
ITAA 1936 177EA(17)(j)
ITAA 1997 202-40
ITAA 1997 Div 974
ITAA 1997 974-10(2)
ITAA 1997 974-5(1)

Case References:
Commissioner of Taxation (Cth) v. Spotless Services Ltd
(1996) 186 CLR 404
96 ATC 5201
(1996) 34 ATR 183