Published on 13 Feb 13
by QUEENSLAND DIVISION, THE TAX INSTITUTE
There are radically divergent views emerging in relation to the interpretation of control and significant influence particularly in the context of minority shareholdings and shareholder arrangements. The flow-on impact upon provisions including Div 6C, debt/equity rules, interest deductibility, thin capitalisation and Div 250 is a contentious issue. This paper examines those issues and some other related recent developments in the context of project financing and consortium investment structures, in particular:
- control, negative control, sufficient influence and connected entities in the context of Div 6C, Div 974-80 and thin capitalisation
- thin capitalisation issues including related party debt rules and the ATO view of 820-39
- changes to the definition of “limited recourse debt”.
Steve, CTA, is a Tax Partner at PwC, specialising in mergers and acquisitions and deals in the infrastructure, PPP and energy sectors. Steve is a member of the IPA Tax Committee and a member of the Expert Panel assisting the Board of Taxation Working Group in relation to debt and equity tax rules.
- Current at
17 March 2016
Arash is a Senior Consultant at PwC.
- Current at
13 February 2013