The Australian Taxation Office has issued Taxpayer Alert (TA) 2020/3 on arrangements involving interposed offshore entities to avoid interest withholding tax.
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Description
We are reviewing arrangements which use offshore related entities to facilitate the avoidance of a withholding tax liability in relation to interest expenses deducted against Australian-sourced income and paid to non-residents.
The arrangements involve a non-resident deriving Australian-sourced income and incurring…