From www.bantacs.com.au: Debt recycling often misleads individuals into believing that moving funds can transform non-deductible debt into tax-deductible debt, which is contingent on the purposes for which the borrowed money is used.

The ATO applies Part IVA to scrutinize arrangements primarily intended for tax benefits, potentially disallowing the tax deductions if the setup appears artificial or contrived.

Filed under: Tax - Individuals

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