Published on 13 Jun 2007
| Took place at Oaks Hotel on Collins, Melbourne
Australia's current thin capitalisation regime has now been in place since 2001 and yet many SME taxpayers still find themselves being caught out by the rules each year. More than a decade of low interest rates, an abundance of liquidity and the rapid growth of private equity in the Australian market has resulted in debt becoming an increasingly popular form of funding in Australia. Increased debt levels are beginning to place pressure on the thin capitalisation capacities of many Australian taxpayers and the Australian Taxation Office has announced its intent to focus on this area. Is your understanding of the thin capitalisation rules good enough to be effective in the current environment?
Thin Capitalisation: Is Debt a Dirty Word?
Author(s): Anthony KLEIN, James STRONG
Topics covered in this presentation include:
why are thin capitalisation rules necessary?
reasons for renewed ATO focus on thin capitalisation
to whom do the Australian thin capitalisation rules apply
a recap of the key features of the rules
different measurement techniques
interaction with the debt/equity rules
interaction with Part IVA
fixing thin capitalisation breaches - some tips and traps
completing a thin capitalisation schedule in practice