High Court Decision on Split Loans

Viewing 7 posts - 1 through 7 (of 7 total)

Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
November 15, 2003 - 10:02 am
On Nov 7 the ATO appealed a decision by the federal court deciding that split loans were legal. The High Court has decided that these split loans do not breach the anti tax avoidance provisions of the Tax Act. ie the ATO lost!
See http://www.propertyinsider.com.au/echo/external/WebTemplate.cfm?clientid=30&fullstory=950&periodid=137
BTW Split loans allow people to capitalise the interest on investment loans while diverting all payments to the owner occupied loan. This increases tax decutions while decreasing the non deductible debt.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
westan
Member
@westan
Join Date: 2002
Post Count: 1,950
November 15, 2003 - 10:07 am
well done terryw
thanks for the update
westan
Administrator
Keymaster
@piadmin
Join Date: 2013
Post Count: 3,225
November 15, 2003 - 12:05 pm
That’s good news, I had been waiting to hear what was happening – bank appointment next week to sort it all out!!
Billfromoz
Participant
@billfromoz
Join Date: 2003
Post Count: 381
November 15, 2003 - 12:06 pm
G’day Terry…
I only remembered this morning, that the descision was not yesterday but Frday last week. I was going to give you the weekend off and contact you Monday… Thanks for keeping us up to date… good news.
Thanks mate
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
November 16, 2003 - 12:03 am
Thanks Terry
I’m wondering why that didn’t make the news? Although I suppose we still have a war to cover, and the Rugby.
Any bets on how long it will take for legislation to be introduced outlawing this practice?
Cheers
Mel
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
November 16, 2003 - 12:08 am
Ok, I’ve now read the article and I’m confused.
It says ‘split-loan case finally resolved’, but it goes on to say that the High Court has granted the ATO an appeal against the Federal Court decision.
So to me, that means another court battle in the High Court over the same issue.
Am I wrong?
Cheers
Mel
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
November 16, 2003 - 12:22 am
You are right Mel, it is not over yet as they will be appealing at the High Court.
I wouldn’t rush into setting anything like this up as yet.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.