Draft Taxation Determination

TD 94/D4

Income tax: when does the 10 year exemption period commence in relation to direct or indirect infrastructure borrowings under Division 16L of Part III of the Income Tax Assessment Act 1936 ?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 94/51.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

The exemption period commences at the time of the borrowing. The time of the borrowing is when the lender borrower relationship is created , that is when the agreement is entered into - not when the funds are used.

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 exemption period commences on 1 July.

Commissioner of Taxation
13 January 1994

References


BO Public Infrastructure Unit DTD/12

ISSN 1038 - 8982

Subject References:
exemption period
infrastructure borrowings

Legislative References:
ITAA 159GZZZU

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

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