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Edited version of your written advice
Authorisation Number: 1051501665322
Date of advice: 01 April 2019
Ruling
Subject: liability to withholding tax under section 12-245 of Schedule 1 to the TAA 1953
Question 1
The ruling concerned whether the Australian entity was liable to withhold amounts under section 12-245 of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953) from amounts paid to a foreign entity under the Agreement.
Answer
The Commissioner ruled that they Australian entity was not liable to withhold amounts under section 12-245 of Schedule 1 to the TAA 1953 from amounts paid to a foreign entity under the Agreement.
Question 2
The ruling concerned whether the Agreement between the Australian entity and the foreign entity gave rise to a debt interest (within the meaning of section 974-15 of the Income Tax Assessment Act 1997 (ITAA 1997) in the Australian entity for Division 820 (thin capitalisation purposes)?
Answer
The Commissioner ruled that the Agreement between the Australian entity and the foreign entity did not give rise to a debt interest (within the meaning of section 974-15 of the ITAA 1997 in the Australian entity for Division 820 (thin capitalisation purposes).