Australia Taxation Office Clarifies Tax Treatment of Interest-Free Loans to Trustee

The Australian Taxation Office June 20 issued a tax determination clarifying the deductibility of interest expenses incurred by a beneficiary of a discretionary trust on loans that were re-lent interest-free to the trustee. Topics covered include: 1) conditions when interest expenses may be deductible; and 2) the effect of early trustee resolution. [Australia, Australian Taxation Office, 06/20/18]

Reference:
View Tax Determination No. TD 2018/9.