Miscellaneous 2017

The new s 974'80 - more obscure than ever

Source: Australian Tax Forum Journal Article

Published Date: 1 Dec 2017

 

The classification for Australian tax purposes of financing arrangements involving multiple instruments or disparate parties has been problematic for at least a decade. The recent proposals to revise these provisions will change current law but not obviously improve it. One step in the legislation " the rules about when to aggregate multiple instruments" is detailed, complex and inconsistent. The second step " just how the debt and equity tests are applied where there are multiple instruments
" and the third step " what the consequences are and for whom, which are meant to follow from aggregation, are ignored. And the decision to create and rely on a new type of legislative instrument makes the endeavour even more uncertain. The article analyses the design of the new provisions and some of the questions which arise from the decision to employ a new type of legislative instrument to elucidate the basic design.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now

Details

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))

("TTI")

The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

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.

Tags

Miscellaneous 2017

Share this page