Tag Archives: debt instruments

Contingent convertible bonds (CoCo’s)- Debt or equity under Div 974

Two recent events are clear signals of easing the impact of the approaching Basel III implementation imposing higher capital adequacy requirement for banking and other financial institutions: the release of the exposure draft on ‘covered bonds’ and the making of the Income Tax Assessment Amendment Regulations 2011(No 2). The tax implications of the two are critical for issuers and holders of bonds in financial institutions. The first allows banks to issue bonds under which holders can either look for recompense … Continue reading

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