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 is a Taxation Consultant with Moore Stephens Perth. He joined the firm in 1987 after fifteen years with the Australian Taxation Office. Since joining Moore Stephens, Syd has overseen the taxation advice provided by the Firm, and managed the taxation compliance function. He advises on both Federal and State revenue matters. The advice has extended from international structuring to personal wealth creation techniques. Syd consults to both the clients of Moore Stephens and is often asked to provide advice to other accounting and legal firms. In addition to consulting Syd provides advice as an expert witness in tax related litigation. Syd has lectured at various Universities in undergraduate and postgraduate taxation law, and tutored at Curtin University in postgraduate taxation law.
- Current at
09 September 2015