Published on 01 Dec 04
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The recent decision of the AAT in DOMJAN I v Taxation of Commissioner and  AATA 815 provides a timely reminder of the applicable principles that govern the deductibility of interest where there is a fluctuating borrowing and the amounts redrawn and are not all used for income producing purposes or are deposited into another credit account which is then drawn on. While a number of the issues considered by the AAT are in fact covered by TR 2000/2, the Domjan case illustrates how the relevant principles are to be applied in a fairly typical factual situation.
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