12 FEBRUARY NEW ZEALAND GAZETTE 571

excepted financial arrangement component of that Capital Note.

(3) No part of the Coupon Interest Payments are attributable to the excepted financial arrangement component of any Capital Note.

7. Examples

Any reference in the following examples to the quantum of any Cash Redemption Amount and the value of Telecom ADRs issued is illustrative only.

Example 1

Investor A notifies TC Finance that Investor A wishes to redeem $US5,000 of Capital Notes.

TC Finance elects to redeem the Capital Notes by procuring the issue of Telecom ADRs rather than for cash. The Capital Notes to be redeemed for Telecom ADRs have a Cash Redemption Amount of $US5,400 (being the principal amount of the Capital Notes ($US5,000) and accrued interest, less any withholding taxes ($US400)).

Investor A receives Telecom ADRs in accordance with the formula prescribed in the US Indenture. For the purposes of this example those ADRs are assumed to have a market value of $US5,600 on the date that the Capital Notes are redeemed.

In accordance with the method prescribed in paragraph 6 of this determination, for TC Finance, and to the extent applicable Investor A, the amount solely attributable to the excepted financial arrangement is:

$US5,600 (being the market value of the ADRs expressed in the US Dollars in which the Capital Notes are denominated) - $US5,400 (being the Cash Redemption Amount) = $US200 (being the amount solely attributable to the excepted financial arrangement).

Therefore, where TC Finance elects to redeem the Capital Notes by procuring the issue of Telecom ADRs the result for TC Finance and to the extent applicable Investor A, is that the relevant amount required to be included in calculating the gross income, or expenditure for the purposes of the qualified accruals rules in respect of those Capital Notes redeemed for Telecom ADRs, is the Cash Redemption Amount.

This determination is signed by me on the 2nd day of February 1998.

MARTIN SMITH, General Manager (Adjudication & Rulings).

60867

Internal Affairs

Gaming and Lotteries Act 1977

Permission to Conduct Within New Zealand a Lottery Promoted Outside New Zealand

Pursuant to section 69 of the Gaming and Lotteries Act 1977, I, Jack Elder, Minister of Internal Affairs, hereby permit JeansWest Corporation Pty Limited, to conduct within New Zealand, subject to the conditions specified in the Schedule to this notice, an instant game promoted outside New Zealand as a sales promotion scheme, to promote the sale of the JeansWest clothing products.

Schedule

Conditions

The permission given by this notice is subject to the following conditions, namely:

(1) JeansWest Corporation Pty Limited, shall not conduct the sales promotion scheme in New Zealand after 28 March 1998;

(2) The results of the draw for unclaimed prizes shall be published in the Sunday Star Times on 10 April 1998. Winners will be notified by certified mail;

(3) New Zealand winners shall not be subject to any extra cost when they claim their prizes;

(4) The chance of a New Zealand participant winning a prize shall be equal to that of an overseas participant.

Dated at Wellington this 29th day of January 1998.

JACK ELDER, Minister of Internal Affairs.

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