ATO issues guidance for taxpayers relying on the safe harbour test

Justin Davis, Tim Keeling and Fabian Fedele discuss the ATO’s response to thin capitalisation compliance in the context of COVID-19.

The Australian Taxation Office (ATO) has released information on how the Commissioner will approach thin capitalisation compliance during the challenging times created by COVID-19.Broadly the ATO acknowledges the uncertainty and disruption that COVID-19 is causing to underlying economic fundamentals that inform the choice of ‘method’ for calculating maximum allowable debt for thin capitalisation purposes. This includes the balance sheet impacts of asset devaluations and increases in debt liab...

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Authors: Justin Davis, Tim Keeling,

Published Date: 14 April 2020