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Thin Capitalisation: Amendments to the Application of Accounting Standards - Public Consultation


Friday, 11 July 2008

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On 13 May 2008, the Government announced its intention to amend the thin capitalisation regime to accommodate certain impacts arising from the 2005 adoption of Australian equivalents to International Financial Reporting Standards (AIFRS).

These amendments will allow entities to depart from the current accounting treatment in relation to certain intangible assets and to exclude deferred tax assets and liabilities and surpluses and deficits in defined benefit superannuation funds when doing their thin capitalisation calculations.

This announcement was made in the context of the Government’s consideration of announced but not yet enacted measures of the previous government.

Comment on the draft legislation to give effect to this measure is sought. The measure is currently scheduled to be introduced, with a view to passage, in the spring 2008 Parliamentary sittings.

It would be appreciated if initial comments could be provided by 1 August 2008. A further period of consultation, following consideration of preliminary views, is anticipated.

Any comments should be directed to:

Josephine Laduzko
International Tax Unit
Department of the Treasury
Langton Crescent

Email: jo.laduzko@treasury.gov.au

Documents Available:

Acrobat (PDF) documents

 Acrobat (PDF)

Thin Capitalisation: Draft legislation  45.39kb
Thin Capitalisation: Outline of draft legislation  25.43kb

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