Thin Capitalisation - Is 'Debt' a Dirty Word?
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?