13 Mar 1414 Application of s 820-39 exemption in some social infrastructure Public Private Partnerships - TD 2014/D8
On 12 March 2014, the ATO released for public comment by 11 April 2014 draft Taxation Determination TD 2014/D8 entitled "Income tax: can the exemption in section 820-39 of the Income Tax Assessment Act 1997 apply to the special purpose finance entity established as part of the 'securitised licence structure' used in some social infrastructure Public Private Partnerships?"
The answer given to the question posed is as follows:
"Yes. The exemption in s 820-39 of ITAA 1997 can apply to the special purpose entity (SPE) that seeks finance for the project which is established as part of the securitised licence structure used in some social infrastructure Public Private Partnerships (PPPs) provided the SPE satisfies the conditions in s 820-39(3) of the ITAA 1997...In the securitised licence structures recently examined by the Commissioner [and described in the Taxation Determination], the conditions in s 820-39(3) have been satisfied."