TD 2015/3 – ‘The interest’ referred to in the phrase at the end of subsection 974-80(2) is the interest held by the ‘ultimate recipient’ [41]

On Wed 18.3.2015, the ATO released Taxation Determination TD 2015/3, which ruled that ‘The interest’ referred to in the phrase at the end of subsection 974-80(2) is the interest held by the ‘ultimate recipient’ and not the interest held by the ‘connected entity’. The Determination goes on the explain: Division 974 contains rules for classifying an…

TD 2015/2 – ‘debt interest’ issued by AusCo is not an ‘equity interest’ under s974-80(1)(d) just because non-resident co invests in debt interest holder [40]

The ATO released Taxation Determination TD 2015/2 on Wed 18.3.2015, ruling that s974-80(1)(d) will not be satisfied: “ merely because a non-resident entity has chosen to invest indirectly in a debt interest issued by an Australian resident company and there is one or more equity interests interposed between the non-resident entity and the entity holding the…

TR 2015/D1 – ‘Bodies Corporate’ under strata title legislation – tax consequences [39]

The ATO has issued a draft ruling explaining specific income tax issues that affect: bodies corporate constituted under strata title legislation; and proprietors of a lot held under that legislation. In particular, it sets out the principles that determine which entity holds property for the purposes of determining: the assessability of income and the deductibility…