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Legal database

Draft Taxation Determination

TD 93/D245

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?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 94/1.

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.

1. A company which borrows to finance the acquisition or construction of a property may satisfy the tests in sub-section 51AD(8) if it has few assets.

2. If the assets of another group company are put at risk, then consideration would be given to the exercise of the discretion in sub-section 51AD(9).

Commissioner of Taxation
23 September 1993

References


BO Public Infrastructure Unit DTD/07

ISSN 1038 - 8982

Related Rulings/Determinations:

TD 92/138
TD 92/139

Subject References:
Allowable deductions
Finance arrangements
Group companies
Non-recourse debt

Legislative References:
ITAA 51AD(8)
ITAA 51AD(9)
ITAA 80G


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