Taxation Determination
TD 94/51
Income tax: when does the exemption period commence in relation to a direct or indirect infrastructure borrowing?
This version is no longer current. Please follow this link to view the current version. |
-
Please note that the PDF version is the authorised version of this ruling.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
FOI status:
may be releasedFOI number: I 1217502| 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. The exemption period commences at the time of the borrowing. The time of the borrowing is when the lender borrower relationship is created under an agreement in respect of an infrastructure borrowing, that is, the time when the indebtedness first arises under the agreement - not when the funds are expended on the infrastructure facility. In general, indebtedness arises when the funds are advanced by the lender or raised by the borrower.
Example
On 1 July a company enters into a loan agreement to obtain funds over a two year construction period. The borrowed funds are to be spent on a qualifying infrastructure facility. The agreement provides for the funds to be advanced immediately. The exemption period commences on 1 July.
Commissioner of Taxation
16/6/94
Previously issued as Draft TD 94/D4
References
ATO references:
NO Public Infrastructure Unit; PIU DTD 94/D4
Related Rulings/Determinations:
TD 94/49
TD 94/50
TD 94/52
TD 94/53
Subject References:
exemption period
infrastructure borrowing
Legislative References:
ITAA 159GZZZU
| Date: | Version: | Change: | |
| You are here | 16 June 1994 | Original ruling | |
| 23 June 1994 | Consolidated ruling | Erratum | |
| 7 December 2016 | Withdrawn |