TA 2016/9 – Commissioner alerts taxpayers that, in his view, ‘debt interests’ treated as ‘equity’ for accounting purposes, can be valued as $nil for ‘thin capitalisation’ purposes

Tax Month - August 2016

On 10 August 2016, the ATO issued TA 2016/9 (the 3rd of 3 on that day). It alerts taxpayers that the Commissioner does not agree with a construction of the ‘thin capitalisation’ provisions in Div 820 of the ITAA97, where a taxpayer issues a ‘debt interest’ that is treated by ‘accounting standards’ (AASB 132) as…

TA 2016/8 – GST concerns about ‘MAAL’ defeating restructures that involve ‘swapping’ roles so that the Australian support company ‘distributes’ (as principal) for the foreign supplier

Tax Month - August 2016

On Wednesday 10.8.16, the ATO released TA 2016/8 (the 2nd of 3). It addresses the ATO’s GST concerns about arrangements being made to avoid the operation of the Multinational Anti-Avoidance Law (MAAL), where the previous foreign supplier of intangible products or services (to Australia customers) now supplies to an Australian distributor (who distributes as principal) although…