The Assistant Treasurer, on Thur 2.4.2015, released the Board of Taxation’s review into aspects of the tax integrity rules that distinguish debt finance from equity. Specifically, the report recommends reforms to the related scheme provisions and the equity override provision in the tax rules for debt and equity.
Mr Frydenberg said the Board of Taxation has provided advice on how to address the uncertainty and compliance costs that result from the current rules, while still preserving the integrity of the debt equity tax rules. He said the Government will consult on exposure draft legislation to implement the Board of Taxation’s recommended approach “in the coming months”.
The Assistant Treasurer said the proposed changes “will operate with prospective effect, and taxpayers who self-assessed in accordance with the 2011 announcement will be protected”.
The Board of Taxation’s accelerated report (April 2015) is available on the Board website.
[Media Release] [LTN 63, 2/4/15] [IT 2/4/15]