Private ruling: liability to withholding tax under section 12-245 of Schedule 1 to the TAA 1953
Date of advice: 1 April 2019
Published: May 2019

Ruling: Q1: The ruling concerned whether the Australian entity was liable to withhold amounts under section 12-245 of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953) from amounts paid to a foreign entity under the Agreement. | A1: The Commissioner ruled that they Australian entity was not liable to withhold amounts under section 12-245 of Schedule 1 to the TAA 1953 from amounts paid to a foreign entity under the Agreement. | Q2: The ruling concerned whether the Agreement between the Australian entity and the foreign entity gave rise to a debt interest (within the meaning of section 974-15 of the Income Tax Assessment Act 1997 (ITAA 1997) in the Australian entity for Division 820 (thin capitalisation purposes)? | A2: The Commissioner ruled that the Agreement between the Australian entity and the foreign entity did not give rise to a debt interest (within the meaning of section 974-15 of the ITAA 1997 in the Australian entity for Division 820 (thin capitalisation purposes).