CFM42040 - Deemed loan relationships: disguised interest: the main rules

Overview of CTA09/S486B

CTA09/S486B(1) sets out a simple legislative principle, as follows:

바카라 사이트˜Where a company is party to an arrangement which produces for the company a return in relation to any amount which is economically equivalent to interest, Part 5 (the loan relationships rules) applies as if the return were a profit arising to the company from a loan relationship바카라 사이트™.

The main feature in applying this principle to an arrangement is to be able to identify a return that is 바카라 사이트˜economically equivalent to interest바카라 사이트™.

CTA09/S486B(2) and (3) therefore set out what is meant by a 바카라 사이트˜return that is economically equivalent to interest바카라 사이트™. CFM42060 looks at this in more detail.

CTA09/S486B(4) and (5) ensure that the credits and debits that are brought into account in respect of the loan relationship rules are taxed on an amortised cost basis, regardless of how the amounts are accounted for by the company (or, indeed, whether the accounts of the company recognise the amounts at all). CFM42070 looks at this in more detail.

CTA09/S486B(6) ensures that it is not possible to bypass the disguised interest rules by splitting the interest-like return between more than one party. Where an interest-like return is split between more than one party, the overall return is taxed between the two parties on a 바카라 사이트˜just and reasonable바카라 사이트™ basis. CFM42080 looks at this in more detail.

CTA09/S486B(7) is an anti-double counting rule to ensure that any amount brought into account in computing a return to which the Chapter applies cannot be brought into account under any other tax provision. CFM42090 looks at this in more detail.

CTA09/S486(8) deals with the situation where the return includes exchange gains and losses that arise as a result of translating the accounts carrying value of the return. Where this is the case, the debits and credits brought into account by the disguised interest rules will include those exchange gains and losses. CFM42100 looks at this in more detail.

CTA09/S486B(9) defines 바카라 사이트˜arrangement바카라 사이트™ for the purposes of the disguised interest rules. CFM42110 looks at this in more detail.