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Debt/equity rules clarified

|Proposed Changes|Australia
Australia

The Australian Taxation Office issued for comment Draft Taxation Determination TD 2008/D14, in which a view is expressed that a legally non-enforceable obligation may be an effectively non-contingent obligation for the purposes of the Debt/Equity rules.

The Debt/Equity rules in Division 974 of the Income Tax Assessment Act 1997 determine whether a scheme is a debt i…

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