Deductibility of return on Tier 2 instruments to be maintained
The Treasury released for consultation Exposure Draft Regulations and Explanatory Memorandum that will preserve the deductibility of return on certain Tier 2 instruments. The Exposure Draft and Explanatory Memorandum were released on 31 October 2012.
The proposed Regulations will ensure that the application of the BASEL III rules will not require Tier 2 instruments to be classified as tax e…