Published on 21 Aug 2008
| Took place at Oaks on Collins, Melbourne
Most practitioners believe they have a good handle on the principles of interest deductibility. However, many developments have occurred in this area since landmark court cases were decided and it's easy to take for granted that you've got it covered. With interest rates on the rise, are you sure your client can claim an interest deduction?
Aimed at all practitioners who advise on financing arrangements for business entities and taxpayers in general, and other in-house tax advisors who have a responsibility for administering the income tax affairs of their company, partnership or trust, this event covered:
the principles determined in key court cases and their effect on interest deductibility
the debt/equity rules focusing on some of the current issues relevant to interest deductibility and likely developments, and
debt pricing, guarantee fees and transfer pricing.
The fundamentals of interest deductibility
Author(s): Helen FISHER, Neil WARD, Michael JENKINS, Natalie WELLARD
This paper covers:
Fundamentals of Interest Deductibility
what is interest? (BHP Co and the debt/equity provisions)
is it too soon? (Steele's case)
is it too late? (Brown's case)
purpose/use (Macquarie Finance and St George cases)
refinancing (Smith & Roberts case)
derivation of income (Total Holdings and Spassked)
interest withholding tax
how do the Debt/Equity rules impact interest deductibility?
effective non-contingent obligations
limited recourse debt
impact of recent cases including St George.
transfer pricing and interest
guarantee fees and intra-group loans
an examination of the ATO's recent discussion paper.