Source: Taxation In Australia Journal Article
Published Date: 1 Oct 2014
The equity override rule in s 974-80, which is part of the debt/equity rules contained in Div 974 of the Income Tax Assessment Act 1997 (Cth), is clearly in need of reform in order to provide taxpayers and the ATO with the certainty, coherence and simplicity once promised by the debt/equity rules. Some current developments, including a review by the Board of Taxation, have given hope that that reform will be achieved. This article sets out the background of s 974-80, its uncertain purpose, scope and application (including some particular areas of uncertainty), and then provides some context to the need for reform, including consideration of the ATO’s administration of the provision.
The article has particular regard to the section’s application to the infrastructure industry, where the uncertainty created by s 974-80 has affected listed entities and future investment structures.
Alternative assets insights: When is a trust a unit trust? - Journal 01 Feb 2017
Alternative assets insights: Alternative assets - A federal Budget lost? - Journal 01 Jun 2016
Alternative assets insights: Finance companies - To consolidate or not? - Journal 01 Sep 2015
Win your privatisation bid by optimising capital allowances - Presentation 18 Mar 2015
Win your privatisation bid for infrastructure assets by optimising capital allowances - Paper 18 Mar 2015
Alternative assets insights: Are NSEIs the electionproof solution to infrastructure funding? - Journal 01 Mar 2015
Eligible (infrastructure) investment business - Journal 01 Aug 2014
US and UK tax update session for Australian corporates podcast - Audio 18 Oct 2021
US and UK tax update session for Australian corporates - Video 18 Oct 2021
US and UK tax update session for Australian corporates - Presentation 18 Oct 2021
Alternative assets insights: ATO views on cross-border debt issues - Journal 01 Sep 2019
Alternative assets insights - Journal 01 Jun 2019
Alternative assets insights: FCT v BHP Billiton Ltd: an influential decision - Journal 01 Apr 2019
Reconstructing financing transactions: A focus on the debt and equity rules, Division 815 and thin capitalisation - Presentation 13 Mar 2019
Alternative assets insights: Placer Dome: Not just a duty case - Journal 01 Feb 2019
Alternative assets insights: Stapled structures and foreign investor measures - Journal 01 Dec 2018
Alternative assets insights: ATO guidance on cross-border funding - Journal 01 Oct 2018
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.