EYEY

Australian thin capitalization and subsidiary disclosure measures introduced into Parliament

|Tax Alerts, Information Reporting, Legis ...|Australia
Australia

  • A Bill has been introduced to Parliament to amend Australia’s thin capitalization rules by replacing the current asset-based test with three new tests: (i) the Default Fixed Ratio Test (FRT) based on 30% of tax earnings before interest, tax, depreciation and amortization (EBITDA), with potential carryforward of denied deductions (FRT disallowed amounts) for up to 15 years, plus the following two a…

Continue Reading