Characterising Derivative-Based Loan Arrangements

Australian Tax Forum, Vol. 19, pp. 435-471, 2004

38 Pages Posted: 22 Aug 2010

See all articles by Stewart Karlinsky

Stewart Karlinsky

San Jose State University - Donald and Sally Lucas Graduate School of Business

Richard Krever

University of Western Australia Law School

Date Written: July 20, 2004

Abstract

The income tax and GST laws contain an array of rules that apply to debt and gains in the nature of interest. The definitions of “debt” or “loan” and amounts in the nature of “interest” vary across the provisions and tax officials, taxpayers and courts must decide whether the terms should be read as applying to debt, loans or interest in a narrow legal sense or should be read more broadly to catch multi-element arrangements that give effect to a debt or loan relationship in an economic or commercial sense but not in conventional single document form. This article reviews the U.K., U.S. and Australian approaches to interpreting multi-element transactions and considers whether four tax provisions dealing with debt should be interpreted to apply to multi-element, derivative-based loan arrangements.

Suggested Citation

Karlinsky, Stewart and Krever, Richard, Characterising Derivative-Based Loan Arrangements (July 20, 2004). Australian Tax Forum, Vol. 19, pp. 435-471, 2004, Available at SSRN: https://ssrn.com/abstract=1663214

Stewart Karlinsky

San Jose State University - Donald and Sally Lucas Graduate School of Business ( email )

One Washington Square
San Jose, CA 95192-0066
United States

Richard Krever (Contact Author)

University of Western Australia Law School ( email )

M253
35 Stirling Highway
Crawley, Western Australia 6009
Australia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
50
Abstract Views
446
PlumX Metrics