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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