The Issues Log

Issue: DB 9(1), HG 9(3)

Submission Number	141
Submitter	Deloitte
Section / Provision Income Tax Act 2007	DB 9(1)
Section / Provision Income Tax Act 2004	HG 9(3)
Date Received	13/05/10
Description of issue	Section DB 9(1) of the ITA07 reduces any interest deduction available to shareholders in a qualifying company that receive non-cash dividends. The corresponding provision in the ITA04 and ITA94, section HG 9(3) only reduced the interest deduction in respect of money borrowed to acquire shares in the qualifying company.
Section / Provision Income Tax Act 1994	HG 9(3)
Status	Finalised
Outcome	The Panel concludes there is an unintended legislative change and retrospective amendment in the ITA 2007.