Taxation Determination

TD 96/22W

Income tax: does the interest payable on late levies represent assessable income of a body corporate?

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Notice of Withdrawal

Taxation Determination TD 96/22 is withdrawn with effect from today.

1. It continues to apply to arrangements begun to be carried out before the withdrawal but does not apply to arrangements begun to be carried out after the withdrawal.

2. TD 96/22 explains that mutuality extends to the payment of interest on late levies and as such is not assessable income of the strata title body corporate.

3. TD 96/22 is replaced by draft Taxation Ruling TR 2015/D1 Income tax: income tax matters relating to bodies corporate constituted under strata title legislation which issued today.

Commissioner of Taxation
25 March 2015

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References

ATO references:
NO 1-6G6G6W7

Related Rulings/Determinations:

TD 93/7
TD 93/73
IT 2505

Subject References:
interest on late payment of strata title levies

Legislative References:
ITAA 25(1)

Case References:
Municipal Mutual Insurance Ltd v. Hills
(1930) 16 TC 430

Jones v. South-West Lancashire Coal Owners' Association Ltd
(1927) 1 KB 33
The Social Credit Savings & Loans Society Ltd v. FC of T
71 ATC 4232
Sydney Water Board Employees' Credit Union Ltd v. FC of T
73 ATC 4129