• Question 31

    Attention

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Complete by placing 'X' in the applicable box. If you answer 'no', go to question 41.

    The thin capitalisation regime prevents an excessive allocation of debt for tax purposes to the Australian operations of multinationals and ensures that Australia obtains a fair share of tax from those who operate internationally.

    You may be excluded from the requirement to apply the thin capitalisation provisions if one of the following applies:

    • you and your relevant associates have total debt deductions of $250,000 or less
    • you satisfy section 820-37 of the ITAA 1997.
    Further Information

    For more information about the thin capitalisation rules, refer to Thin capitalisation guides.

    End of further information
    Last modified: 09 Nov 2011QC 24292