When is interest paid? The wide view versus the narrow view – 10 August 2016

Article

When is interest paid? The wide view versus the narrow view – 10 August 2016

Tax insights

Constructive payments for withholding tax purposes recently came under the Full Federal Court’s microscope in Millar v Commissioner of Taxation [2016] FCAFC 94.

The main issue before the court was whether the loan arrangement upon which interest accrued (and was then capitalised) was a sham; the majority holding that it was. However, the noteworthy issue in this case is the constructive payment issue, which potentially has far reaching application. The majority gave the constructive payment provision a broad interpretation and application. 

When is interest paid? The wide view versus the narrow view
Did you find this useful?