Draft Taxation Determination TD 2012/D11 and the proposed amendments to Div 243 have the potential to adversely impact on project financing and securitisation activities.
This paper covers:
- Securitisation structures:
- what is s 820-39 aimed at
- what are the ATO’s views?
- is this just an issue for securitisation structures used in PPPs?
- Limited recourse debt amendments:
- what is limited recourse debt?
- when do the provisions apply (refinancing, sale)?
- can the provisions apply even if the debt is ultimately repaid in full?
- how to calculate the “excessive deductions”, including examples.