ATO ID 2013/44 – person in the business of money lending is not assessable on interest already accrued (even if it later appears it should not have been) [59]

The ATO on Fri 9.8.2013, issued ATO ID 2013/44 (Assessable income: interest income of money lender). According to the ATO, a taxpayer who carries on a business of money lending has not derived, under s 6-5 of the ITAA 1997, interest from a loan calculated on a daily accrual basis that was returned as assessable income in an earlier income year, if the taxpayer subsequently recognises that at a point in time in the earlier income year, it should have stopped accruing interest on that particular loan.

[LTN 153, 9/8/13]