Published on 17 Aug 05
by WESTERN AUSTRALIAN DIVISION, THE TAX INSTITUTE
This paper outlines what you need to know and importantly, what you should be doing NOW with respect to at call loans. It covers the scenario where a company has been lent money, specifically looking at the implications of the debt/equity rules now that the transitional provisions no longer have application and importantly the topical issue of 'statute barred' debt and the ramification from the WA perspective.
Impact of debt equity rules:
- key impacts from 1 July 2005
- which at call loans are affected
- what it means to have a 'loan' treated as equity
- impact on the provisions (transfer pricing, withholding tax, etc.)
- concessions for small business
- what should you do?
- statute of limitations - WA perspective
- loans repayable on demand
- refreshing the limitations period
- acknowledgement of debt
- part payment of loan
- Section 108 of Div 7A
- proposed offer by the ATO
- a suggested action plan.
Syd joined Moore Stephens in 1987 after 14 years with the Australian Taxation Office. Since joining the firm he has overseen the taxation advice provided by the firm, and supervised the taxation compliance functions. Syd has a Commerce Degree from the University of Western Australia, a Graduate Diploma in Business Law from Curtin University and a Masters Degree in Taxation from the University of NSW.
Current at 14 May 2008
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