ATO finalises arm’s length debt guidance

Tim Keeling and Frank Putrino explore the ATO’s guidance on key technical aspects of the arm’s length debt test for thin capitalisation purposes.

The Australian Taxation Office (ATO) has now finalised a previous draft taxation ruling (TR) and Practical Compliance Guideline (PCG) relating to the Arm’s Length Debt Test (ALDT).TR 2020/4 Income tax:  thin capitalisation – the Arm’s Length Debt Test reflects the ATO’s finalised version of its previous draft ruling TR 2019/D2.See related article: New draft risk guidance for outbound interest-free loansKPMG’s key submission points to the ATO regarding TR 2019/D2 can be found here.The ATO...

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Authors: Tim Keeling, Frank Putrino

Published Date: 14 August 2020