Taxation Determination

TD 2005/6W

Income tax: section 8-1 of the Income Tax Assessment Act 1997: capital protected loan facility with a trading feature: interest deductibility

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Notice of Withdrawal

Taxation Determination TD 2005/6 is withdrawn with effect from today.

1. TD 2005/6 deals with the interim measures relating to changes announced in 2003 in respect of the treatment of capital protected borrowings. Specifically, it explains when interest payable on a capital protected loan facility with a trading feature is deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997).

2. Capital protected borrowings are now dealt with by Division 247 of the ITAA 1997.

3. TD 2005/6 has no ongoing relevance, and is therefore withdrawn without replacement.

Commissioner of Taxation
7 December 2016

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Previously issued as Draft TD 2004/D88

References

ATO references:
NO 1-9N72KXS

Related Rulings/Determinations:

TR 92/20

Subject References:
capital protected loan facility
capital protected product
interest deductibility
limited recourse loan
trading feature

Legislative References:
TAA 1953 Pt IVAAA
ITAA 1997 8-1
ITAA 1936 Pt III Div 3 Subdiv H