Categories:Australasia,Tax

Australian tax reforms for debt deductions — thin capitalisation rules and arm’s-length debt test

By Karen Payne

The Board of Taxation has released a discussion paper as part of its review and consultation on the arm’s-length debt test (ALDT) in the thin capitalisation rules. The ALDT is one of three alternatives available to taxpayers to determine the maximum level of debt on which interest deductions may be claimed and is an alternative to the safe harbour threshold in the thin capitalisation rules.  

Debt deductions are not subject to thin capitalisation limits where they are (in aggregate) below the de minimis thresholds (currently AUD250,000 or £135,500, proposed to be increased to AUD2m)…

If you are registered and logged in to the site, click on the link below to read the rest of the Minter Ellison briefing. If not, please register or sign in with your details below. 

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Minter Ellison

View more briefings from Minter Ellison

Overview

Level 19, Aurora Place
88 Phillip Street
Sydney
2000
Australia
http://www.minterellison.com

Jurisdiction: Australia
No. of offices: 10
No. of qualified lawyers: 791