Skip to main content
shopping_cart

Your shopping cart is empty

Q&A: Funding discretionary trust distributions; deductibility of interest

Published on 01 Sep 03 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

The Commissioner has issued a final ruling TR 2003/9 on the deductibility of interest incurred by a trustee on borrowed funds used to pay distributions to beneficiaries.

In this article we focus on its application to trustees of discretionary trusts. Where the trust has fixed entitlements and all of the trust's activities are income earning, the Ruling confirms that the interest should be deductible.

Author profiles:

Keith JAMES
Keith is a partner at Hall & Wilcox, and is a member of the Family Business & Wealth Management and Taxation practice groups. Keith is a key figure in the tax advisory profession. In March 2004 he was appointed to the Board of Taxation. His involvement has extended to Chairman of the Public Accountants Committee, Victorian President, National Councilor, Chairman of the Taxation Centre of Excellence and the National Tax Advisory Committee for CPA Australia. Keith was the accounting profession representative on the Commissioner of Taxation’s Advisory Panel, his National Liaison Committee and the Advisory Committee on the Taxpayers Charter. He was joint Chairman of the working party on the National Review of Standards of the Tax Profession and a member of the steering committee of the Pappas Carter Report reviewing the Australian Taxation Office’s large case audit program.
Current at 20 August 2007 Current at 29 August 2007 Click here to expand/collapse more articles by Keith JAMES.
 
Graham WARREN
Graham is a Solicitor at Hall & Wilcox Lawyers.
Current at May 2005 Current at 19 November 2004 Click here to expand/collapse more articles by Graham WARREN.

 

Copyright Statement
click to expand/collapse