Taxation Ruling

TR 95/25A2 - Addendum No. 2

Income tax: deductions for interest under subsection 51(1) of the Income Tax Assessment Act 1936 following FC of T v. Roberts; FC of T v. Smith

FOI status:

may be released

Addendum No. 2

This Addendum amends Taxation Ruling TR 95/25 as follows:

1. Omit paragraph 33A; substitute:

33A. In Hayden the Federal Court considered whether interest incurred by an Executor on borrowings that were used to discharge an obligation of the deceased estate was deductible under subsection 51(1). The fact that the borrowing of funds permitted income producing assets to remain as part of the estate so that the income stream to the estate was not diminished, did not bring the interest of the borrowings within a loss or outgoing under subsection 51(1).

Commissioner of Taxation
23 June 1999


ATO references:
NO 99/4295-5; 95/4339-2

ISSN 1039-0731

Related Rulings/Determinations:

TR 95/25A