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INCOME TAX ASSESSMENT ACT 1997 - SECT 727.520 Equity or loan interest and related terms

INCOME TAX ASSESSMENT ACT 1997 - SECT 727.520

Equity or loan interest and related terms

  (1)   An equity or loan interest in an entity is a * primary interest, or a * secondary interest, in the entity.

  (2)   A primary interest in an entity is a * primary equity interest, or a * primary loan interest, in the entity.

  (3)   The meaning of primary equity interest in an entity is set out in the table.

 

Primary equity interests

Item

In the case of this kind of entity:

Primary equity interest means:

1

a company

a * share in the company; or

an interest as joint owner (including as tenant in common) of a * share in the company

2

a trust

any of these:

(a)   an interest in the trust income or trust capital; or

(b)   any other interest in the trust; or

(c)   an interest as joint owner (including as tenant in common) of an interest covered by paragraph   (a) or (b)

  (4)   A primary loan interest in an entity is:

  (a)   a loan to the entity; or

  (b)   an interest as joint owner (including as tenant in common) of a loan to the entity.

  (5)   A secondary interest in an entity is a * secondary equity interest, or a * secondary loan interest, in the entity.

  (6)   A secondary equity interest in an entity is a right or option:

  (a)   to * acquire an existing * primary equity interest in the entity; or

  (b)   to have the entity issue a new primary equity interest.

  (7)   A secondary loan interest in an entity is a right or option:

  (a)   to * acquire an existing * primary loan interest in the entity; or

  (b)   to have the entity issue a new primary loan interest.

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