Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 974.55

The debt interest and its issue

  (1)   If a * scheme, or 2 or more * related schemes, give rise to a * debt interest in an entity, the debt interest:

  (a)   consists of the interest that carries the right to receive a * financial benefit that the entity or a * connected entity has an * effectively non - contingent obligation to provide under the scheme or any of the schemes; and

  (b)   is taken, subject to section   974 - 60, to be a debt interest in the entity; and

  (c)   is taken to be issued by the entity; and

  (d)   is issued when the entity (or a connected entity of the entity) first receives a * financial benefit under the scheme or any of the schemes; and

  (e)   is on issue while an effectively non - contingent obligation of the entity (or a connected entity of the entity) to provide a financial benefit under the scheme or any of the schemes remains unfulfilled.

  (2)   The interest referred to in paragraph   (1)(a) may take the form of a proprietary right, a chose in action or any other form.


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