Skip to main content
shopping_cart

Your shopping cart is empty

07 Dec 09 Decision Impact Statement - Willersdorf-Greene

The ATO has published a Decision Impact Statement  in relation to the AAT decision in Douglas Willersdorf-Greene and FCT [2009] AATA 649; 2009 ATC 10-102. The case concerned whether interest on a loan used to satisfy a guarantee is deductible, where the later loan was taken out after the relevant income producing opportunity related to the guarantee had passed. The AAT held that the interest and the borrowing expenses incurred in relation to the guarantee were deductible.

The ATO says that it accepts that this conclusion was open to the AAT on the particular facts as found, and that the case is distinguishable from cases in which the guarantees related directly to the income earning activities of the relevant companies, and only related indirectly, if at all, to the income earning activities of the guarantors (Re Pope and FCT [2005] AATA 1085 and Re Applicant and FCT [2001] AATA 831).

For a copy of the Decision Impact Statement, go here

 


Media Release Search
Keywords
Eg. TD 2005/D52 ALL words EXACT phrase WITHOUT words Date range
From To