Taxation Determination
TD 93/48
Income tax: is a deduction for borrowing costs allowable under section 67 of the Income Tax Assessment Act 1936 when a loan does not proceed?
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FOI status:
may be releasedFOI number: I 1214459| This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20). |
1. If borrowing costs are incurred with a view to borrowing money and the loan does not proceed, no deduction is allowable under section 67.
2. Section 67 requires that money must in fact be borrowed and must be used by the taxpayer for the purpose of producing assessable income.
Commissioner of Taxation
25/3/93
Previously issued as Draft TD 92/D162
References
ATO references:
NO TOW02
Subject References:
borrowing costs,
loans
Legislative References:
ITAA 67
Case References:
Case Q61 / Case 125
83 ATC 319
26 CTBR(NS) 882
| Date: | Version: | Change: | |
| You are here | 25 March 1993 | Original ruling | |
| 3 November 2010 | Withdrawn |