‘Till debt do us part’: ATO releases draft compliance approach to Arm’s Length Debt Test

Tim Keeling, Frank Putrino and Jay Mankad provide an overview of the ATO’s compliance approach to the Arm’s Length Debt Test.

The Australian Taxation Office (ATO) released its long-awaited draft practical compliance guidance PCG 2019/D3 (the PCG) today, which sets out a risk assessment framework that outlines the ATOs compliance approach to applying the Arm’s Length Debt Test (ALDT) as well as instances where the application of the ALDT will be considered ‘Low Risk’. The PCG follows and builds on TR 2019/D2, which provides an update and refreshes the ATO’s views regarding key technical issues pertaining to the ALDT....

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Authors: Tim Keeling, Frank Putrino,

Published Date: 28 August 2019