01 Nov 12 Income Tax Assessment Amendment Regulation 2012: Basel III
As part of the 2012-13 Budget, the Government announced it will ensure that Australia’s implementation of the Basel III capital reforms does not preclude certain Tier 2 regulatory capital instruments from being classified as a debt interest for the purposes of the income tax law.
Treasury has released for public comment an exposure draft regulation that contains the proposed amendments to implement the Government’s announcement.
The proposed amendment inserts a regulation into the Income Tax Assessment Regulations 1997 relating to the obligation to pay the principal or interest on a relevant term subordinated note at a particular time on or after 1 January 2013.
The closing date for submissions is Wednesday, 14 November 2012.