The Board of Taxation on Tue 25.3.2014 (also), released for comment a discussion paper on the debt/equity rules.
The Board noted that it had been asked to undertake a post-implementation review of the rules including whether there can be improved arrangements within the Australian tax system to address any inconsistencies between Australia’s and other jurisdictions’ debt and equity rules that could give rise to tax arbitrage opportunities.
A key goal for the Board in issuing the discussion paper, is to identify issues with significant practical implications for businesses and/or administrators, or which involve significant risks to revenue, that warrant further consideration in the review process. The Board said the recommendations in its final report will be focused on addressing these significant practical issues.
The Board is expected to report to the Government by March 2015.
COMMENTS are due by 23 May 2014
[LTN 57, 25/3/14]