TD 2016/6 – s25-90 deductions available for obtaining a 10% stake in a foreign company but not if acquired through a foreign branch (where income is NANE under s23AH)
The ATO released TD 2016/6 on 13.4.2016 – ruling that interest costs incurred by an Australian resident company, in acquiring foreign source dividend income, through a foreign branch, is not deductible under s25-90 of the Income Tax Assessment Act 1997 (‘ITAA97‘). Section 25-90 allows deductions for losses and outgoings that would not, otherwise, be not…