Australia to Issue Related-Party Construction Financing Guidance

Australian tax authorities are planning to issue guidance in June on inbound related-party financing by private groups in the property and construction industry.

The guidance is aimed at helping such groups comply with their obligations and mitigate tax risks associated with their financing arrangements, the Australian Taxation Office said on its website.

It will be accompanied by examples of inbound related-party financing arrangements on the ATO Legal database, the ATO said.

• In inbound related-party financing, an Australian taxpayer borrows or receives other financing from a corporate affiliate or other related party outside the country.
• The ATO said it will be ...