When dealing with thin capitalisation are there rules to help determine whether a financial arrangement between two companies is debt or equity?
- Division 974 of the Income Tax Assessment Act 1997 defines what equity and debt interests are.
- Only in the case of a debt can interest be claimed.
- Even in this situation the thin capitalisation rules may deny or reduce the deductions.
- You can use our LegalPlan™ membership to ask lawyers for tenders or a Fixed Fee Quote in relation to your international taxation needs.
Read some more FAQS from our International section