Published on 09 Sep 04
by VICTORIAN DIVISION, THE TAX INSTITUTE
1 July 2001 heralded a whole new approach to the taxation classification of debt and equity interests. The rules are complex and encompassing. There has been a further extension for at call loans and a carve-out for certain taxpayers. It is important to understand the practical impact of the debt equity rules on loan arrangements and what you need to do to ensure unforeseen impacts do not occur. The issues covered in this paper include:
- identifying debt and equity interests?
- at call loans and the transitional period up to 30/6/04
- the consequences of a loan being a debt or equity interest
- maximum 10 year terms and charging of interest
- documentation requirements.
Neil Ward FTI
Neil is a Partner at Deloitte. Neil has more than 25 years experience advising on tax. During this period he has advised on most aspects of corporate taxation both from an Australian
and International perspective. Neil has had significant experience with tax consulting to the banking and finance sector. Neil is
recognised as one of the leading tax advisers on financial arrangements, foreign exchange, thin capitalisation and infrastructure
transactions and has been actively involved in the tax reform of financial arrangements. Current at 01 June 2009
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
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