Miscellaneous 2003

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

Source: Taxation In Australia Journal Article

Published Date: 1 Sep 2003

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.

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Miscellaneous 2003

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