It is imposed on the interest paid by these Australian Borrowers to either non-resident lenders not deriving interest in carrying on business at or through a permanent establishment in Australia; or Australian resident lenders deriving interest in carrying on business at or through a permanent establishment outside Australia (together, Offshore Lenders).
In their session at the 2019 Financial Services Taxation Conference, Ian Kellock, CTA, and Bronwyn Kirkwood, CTA, (both Ashurst), looked at some practical interest withholding tax issues using examples and case studies.
The primary focus of the paper is on interest paid in respect of borrower/lender relationships.
The paper is available to view here.
Ian’s practice primarily focuses on due diligence and structuring for mergers, acquisitions and divestments, financing transactions and group reorganisations. Ian has significant recent experience advising on all income tax aspects of financing and refinancing transactions and asset and debt reconstruction projects.