Product Ruling

PR 2006/26W

Income tax: deductibility of interest incurred on borrowings related to the Merrill Lynch Structured Equity Loan

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Notice of Withdrawal

Product Ruling PR 2006/26 is withdrawn with effect from 1 July 2007.

1. Product Ruling PR 2006/26 sets out the Commissioner's view on the deductibility of interest incurred on borrowings related to the Merrill Lynch Structured Equity Loan.

2. From 1 July 2007, the recently enacted Division 247 of the Income Tax Assessment Act 1997 applies a different methodology for calculating the cost of the capital protection for entities in the Merrill Lynch Structured Equity Loan. PR 2006/26 therefore has no application to entities entering into the Merrill Lynch Structured Equity Loan on or after 1 July 2007.

Commissioner of Taxation
4 July 2007

References

ATO references:
NO 2006/20258

Related Rulings/Determinations:

TR 92/20
TR 95/33

Subject References:
debt deductions
financial products
interest expense
prepaid expense
product rulings
public rulings
tax administration
tax avoidance

Legislative References:
TAA 1953
ITAA 1936 51AAA
ITAA 1936 82KL
ITAA 1936 Pt III Div 3 Subdiv H
ITAA 1936 82KZL(1)
ITAA 1936 82KZL(2)(a)
ITAA 1936 82KZM
ITAA 1936 82KZMA
ITAA 1936 82KZMD
ITAA 1936 82KZME
ITAA 1936 82KZME(4)
ITAA 1936 82KZME(5)
ITAA 1936 82KZMF
ITAA 1936 Pt IVA
ITAA 1997 8-1
ITAA 1997 104-10
ITAA 1997 104-25
ITAA 1997 110-25
ITAA 1997 110-25(2)
ITAA 1997 104-25(1)(c)
ITAA 1997 104-25(3)
ITAA 1997 110-55(2)
ITAA 1997 Div 134
ITAA 1997 134-1(1)
ITAA 1997 134-1(4)
Copyright Act 1968
Corporations Act 2001