Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 974.145

  (1)   The benchmark rate of return for an interest (the test interest) in an entity is the annually compounded internal rate of return on an * ordinary debt interest that:

  (a)   is issued, immediately before the test interest is issued, by the entity, or an equivalent entity, to an entity that is not a * connected entity; and

  (b)   has a comparable maturity date; and

  (c)   is in the same currency; and

  (d)   is issued in the same market; and

  (e)   has the same credit status; and

  (f)   has the same degree of subordination to debts owed to the ordinary creditors of the issuer.

  (2)   If there is no interest that satisfies subsection   (1), the benchmark rate of return for the test interest is the annually compounded internal rate of return on an interest that is closest to the test interest in the respects referred to in that subsection   (adjusted appropriately to take account of the differences between that interest and the test interest).

  (3)   The regulations may:

  (a)   specify the meaning to be given to an expression used in this section; or

  (b)   provide for a different method of determining the * benchmark rate of return.