Product Ruling
PR 2009/5A1 - Addendum
Income tax: TFS Sandalwood Project 2009
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Addendum
This Addendum amends Product Ruling PR 2009/5 to reflect the addition of a third (preferred) financier for the Project.
PR 2009/5 is amended as follows:
Omit the fourth dot point; substitute:
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- enter into finance arrangements with Arwon Finance Pty Ltd (Arwon), MIS Funding No. 1 (MIS) or Commonwealth Bank of Australia Ltd (CBA), other than as specified in paragraphs 89 to 97 of this Ruling; or
Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
Omit the last two dot points; substitute:
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- Summary of Terms and Conditions for Arwon Finance Pty Ltd, received on 19 December 2008;
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- Harvesting and Processing Plantation Grown Indian Sandalwood for Tropical Forestry Services Ltd, dated April 2005;
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- further correspondence received 15 April 2009 and 18 May 2009;
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- TFS Limited CBA MIS Financing - 2009 Series Term Sheet dated 20 October 2008, received 15 April 2009;
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- CBA Loan Application and Loan Agreement, received 15 April 2009;
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- Draft 4 of the Origination Deed between Commonwealth Bank of Australia and Tropical Forestry Services Limited, received 15 April 2009; and
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- Supplementary Product Disclosure Statement dated 4 March 2009, received 15 April 2009.
Omit 'Approximately 950 hectares'; substitute 'Up to 1,500 hectares'.
Omit '5,700 Sandalwood Lots'; substitute 'approximately 8,982 Sandalwood Lots'.
Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
(a) Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
(b) Omit the last sentence; substitute:
A Grower who enters into a finance arrangement with a lender other than Arwon, MIS or CBA may request a private ruling on the deductibility or otherwise of interest incurred under finance arrangements not covered by this Product Ruling.
(a) Omit the heading; substitute:
Finance offered by Arwon, MIS or CBA
(b) Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
(a) Omit 'both Arwon and MIS'; substitute 'Arwon, MIS or CBA'.
(b) Omit '(up to 3 years)'; substitute '(up to 3 years, for loans with a term of 5 years or more)'.
Omit 'The following conditions apply to the above loan arrangements'; substitute 'The following conditions apply to the above loan arrangements in respect of Arwon and MIS'.
Insert the paragraph:
96A. The following conditions apply to the above loan arrangement in respect of CBA:
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- monthly repayments of interest only or monthly repayments of principal and interest;
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- if a variable interest rate loan is obtained, the rate will be the 'Better Business Loan Variable Benchmark Rate' at the time of application plus a margin of up to 7%; or
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- if a fixed interest loan is obtained, the rate will be the 'Better Business Loan Fixed Term Benchmark Rate' at the time of application plus a margin of up to 7% per annum;
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- the borrower must pay a loan Establishment Fee of $250 or 0.25% of the Principal Sum, whichever is the greater;
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- a Monthly Loan Service Fee of $20 per month must be paid; and
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- stamp duty and other costs and expenses specified at clauses 7.1 (c)-(f) of the CBA Loan Agreement must be paid, as applicable.
Omit 'Arwon and MIS'; substitute 'Arwon, MIS or CBA'.
Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
Omit 'Arwon or MIS'; substitute 'Arwon, MIS or CBA'.
This Addendum applies on and from 24 June 2009.
Commissioner of Taxation
24 June 2009
Not previously issued as a draft
References
ATO references:
NO 2006/20258