Australia: Discussion Paper released on the arm’s length debt test

Tax Insights ()
The Board of Taxation (BoT) released a Discussion Paper on 16 December 2013 as part of its mandate to provide a report on the operation of the arm’s length debt test (ALDT) contained in Australia’s thin capitalisation regime. In particular, the BoT has outlined in its Discussion Paper a number of suggestions to make the ALDT easier to comply with from both the perspective of taxpayers and the Australian Taxation Office (ATO). BoT has also considered eligibility criteria for the ALDT. A range of questions have been outlined in the Discussion Paper and stakeholders have been requested to provide responses by 14 March 2014, with the BoT due to issue its final report to the Government in December 2014.