Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 215.10

  (1)   A * non - share dividend paid by an ADI (an authorised deposit - taking institution) for the purposes of the Banking Act 1959 is unfrankable if:

  (a)   the ADI is an Australian resident; and

  (b)   the non - share dividend is paid in respect of a * non - share equity interest that:

  (i)   by itself; or

  (ii)   in combination with one or more * schemes that are * related schemes to the scheme under which the interest arises;

    forms part of the ADI's Tier 1 capital either on a solo or consolidated basis (within the meaning of the * prudential standards); and

  (c)   the non - share equity interest is issued at or through a * permanent establishment of the ADI in a * listed country; and

  (d)   the funds from the issue of the non - share equity interest are raised and applied solely for one or more purposes permitted under subsection   (2) in relation to the non - share equity interest.

  (2)   The permitted purposes in relation to the * non - share equity interest (the relevant interest ) are the following:

  (a)   the purpose of the business of the ADI carried on at or through the permanent establishment other than the transfer of funds directly or indirectly to:

  (i)   the Australian head office of the permanent establishment; or

  (ii)   any * connected entity of the ADI that is an Australian resident; or

  (iii)   a permanent establishment of the ADI, or of a connected entity of the ADI, located in Australia;

  (b)   the purpose of redeeming:

  (i)   a * debt interest; or

  (ii)   a non - share equity interest;

    that is issued, before the relevant interest is issued, at or through the permanent establishment and is held by a connected entity of the ADI that is an Australian resident;

  (c)   the purpose of returning funds to:

  (i)   the Australian head office of the permanent establishment; or

  (ii)   a permanent establishment of the ADI or of a connected entity of the ADI, located in Australia;

    if the funds are contributed, before the relevant interest is issued, for use in the business of the ADI carried on at or through the permanent establishment.