Income tax: debt and equity interests: when is a public unit trust in a stapled group a connected entity of a company for the purposes of paragraph 974-80(1)(b) of the Income Tax Assessment Act 1997

TR 2012/D5 considers arrangement whereby: • shares in a company are stapled to units in a public unit trust, • the stapled securities are issued to investors to raise funds primarily for use in the business conducted by the company, and • the funds raised are predominantly contributed to the public unit trust and then used by the trustee to acquire a debt interest in the company.

TR 2012/D5 will be replaced by a Law Administration Practice Statement.