Income Tax (Transitional Provisions) Act 1997

For the purposes of Part 3‑90 of the Income Tax Assessment Act 1997, this section affects whether an interest or right that is held by an entity on or after 1 July 2002 and relates to another entity is a membership interest of the entity in the other entity.

Apply Division 974 of the Income Tax Assessment Act 1997 in determining under Subdivision 960‑G of that Act whether the interest or right is a membership interest of the entity in the other entity.

Under Subdivision 960‑G of the Income Tax Assessment Act 1997, a debt interest relating to an entity is not a membership interest in the entity. Division 974 of that Act explains what a debt interest is.

This section has effect whether or not the debt and equity test amendments (as defined in item 118 of Schedule 1 to the New Business Tax System (Debt and Equity) Act 2001) apply to transactions in relation to the interest or right at the relevant time.