Taxation Determination
TD 94/1
Income tax: where subsection 51AD(8) of the Income Tax Assessment Act 1936 applies to a company will consideration be given to the exercise of the Commissioner's discretion pursuant to subsection 51AD(9) if the assets of other companies in the group are put at risk?
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FOI status:
may be releasedFOI number: I 1216862| 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. A company which borrows to finance the acquisition or construction of a property may satisfy the tests in subsection 51AD(8) if it has few assets. In such cases the parent or another group company, as defined in section 80G, may put assets at risk to support the borrowing.
2. If the assets of another group company are put at risk, then consideration would be given to the exercise of the discretion in subsection 51AD(9). What constitutes sufficient assets and adequate exposure to risk can only be determined on the facts of each particular case.
Commissioner of Taxation
13 January 1994
Previously issued as Draft TD 93/D245.
References
ATO references:
NO Public Infrastructure Unit DTD/07
Related Rulings/Determinations:
TD 92/138
TD 92139
Subject References:
allowable deductions
finance arrangements
group companies
non-recourse debt
Legislative References:
ITAA 51AD(8)
ITAA 51AD(9)
ITAA 80G
| Date: | Version: | Change: | |
| You are here | 13 January 1994 | Original ruling | |
| 31 July 1996 | Withdrawn |