The Chair of the Board of Taxation, Mrs Teresa Dyson, on Mon 16.12.2013 announced that the Board had released a discussion paper and was inviting written submissions to assist in its Review of the Thin Capitalisation Arm’s Length Debt Test in Div 820 of the ITAA 1997. Further information is on the Board’s website.

The review was announced in this year’s 14 May 2013 Federal Budget. The Board was asked to consult on ways to make the arm’s length test more effective by reducing compliance costs for business and making it easier for the ATO to administer.

SUBMISSIONS are due by 14 March 2014.

Source: Board of Taxation media release No 45, 16 December 2013

[FJM Note:    The discussion paper invites written submissions by 14 March 2014 for its own report in December 2014. It has a Table of Contents with the following headings: 1. Executive Summary; 2. Background to the Review; 3. The Arm’s Length Rule; 4. Reduction in Compliance Costs for Taxpayers; 5. Easing the administrative burden for the ATO; 6. Eligibility for the Arm’s Length Test; Gossary; Appendix A: Questions for Chapters 4, 5 & 6; Appendix B: Comparison of Thin Capitalisation and Transfer Pricing Regimes.]

[LTN 243, 16/12/13]

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