The capital proceeds received by Holders on Redemption of the MCN7 will be replaced with the market value of the MCN7 on the Redemption Date (worked out as if the Redemption had not occurred and was never proposed to occur) if the capital proceeds are more or less than the market value of the MCN7 (subparagraph 116-30(2)(b)(ii)). [...] The policy of MGL in relation to the franking of dividends on the MGL Ordinary Shares of MGL is not expected to change as a result of the issuance of the MCN7. [...] (i) The share capital account of MGL will not become tainted (within the meaning of Division 197) by the issue of the MCN7 or the issue of MGL Ordinary Shares on Exchange of the MCN7. [...] Both the issue of MGL Ordinary Shares on Exchange and the Redemption of MCN7 will constitute the provision of a capital benefit to Holders (paragraph 45A(3)(a) of the ITAA 1936 for an Exchange, and paragraph 45A(3)(b) of the ITAA 1936 as affected by subsection 45A(3A) of the ITAA 1936 for a Redemption). [...] Accordingly, paragraph 45B(2)(c) of the ITAA 1936 would not be satisfied and the Commissioner will not make a determination under paragraph 45B(3)(b) of the ITAA 1936 that section 45C of the ITAA 1936 applies to the whole, or a part, of the capital benefit provided to Holders on Exchange or Redemption.
- Pages
- 17
- Published in
- Australia
Table of Contents
- What this Ruling is about 1
- Who this Ruling applies to 1
- What this Ruling does not consider 2
- When this Ruling applies 2
- Ruling 2
- Consequences of acquiring Macquarie Capital Notes 7 2
- Acquisition date 2
- Cost base and reduced cost base 2
- Consequences of holding your Macquarie Capital Notes 7 3
- Distributions on Macquarie Capital Notes 7 and entitlement to a tax offset for franking credits 3
- Determination under paragraph 204-30(3)(c) 3
- Determination under paragraph 177EA(5)(b) of the ITAA 1936 3
- Gross-up and tax offset cancelled in certain circumstances 3
- Qualifying securities 4
- Consequences of disposing of your Macquarie Capital Notes 7 4
- Macquarie Capital Notes 7 are not traditional securities 4
- Exchange of Macquarie Capital Notes 7 for Macquarie Group Limited Ordinary Shares 4
- Resale of Macquarie Capital Notes 7 4
- Disposal of Macquarie Group Limited Ordinary Shares by a Sale Agent on Exchange 5
- Redemption of Macquarie Capital Notes 7 5
- Other integrity provisions 5
- Section 45 of the Income Tax Assessment Act 1936 5
- Subsection 45A(2) of the Income Tax Assessment Act 1936 5
- Section 45B of the Income Tax Assessment Act 1936 6
- Scheme 6
- Background 6
- Main features of Macquarie Capital Notes 7 6
- Issue price 6
- Distributions 7
- Mandatory Exchange 7
- Mandatory Exchange on Non-Viability Event 7
- Optional Exchange 8
- Acquisition Event Exchange 8
- Exchange mechanics 8
- Disposal of Macquarie Group Limited Ordinary Shares by a Sale Agent on Exchange 8
- Redemption 8
- Resale 8
- Other matters 9
- Appendix – Explanation 11
- Section 177EA of the Income Tax Assessment Act 1936 11
- Gross up and tax offset cancelled in certain circumstances 11
- Qualified person – paragraph 207-145(a) 12
- Paragraphs 207-145(1)(b) and (c) 13
- Paragraph 207-145(1)(d) 13
- Paragraph 207-145(1)(da) 13
- Paragraph 207-145(1)(db) 13
- Macquarie Group Limited Ordinary Shares received on Exchange not a dividend or non-share dividend 13
- Section 45 of the Income Tax Assessment Act 1936 14
- Section 45A of the Income Tax Assessment Act 1936 14
- Section 45B of the Income Tax Assessment Act 1936 14
- References 16
