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Course overview
- What is Thin Capitalization
- Thin Capitalization As a Tool of Tax Planning
- Why debt rather than equity
- Tax Treatment of Debt Vs Equity An Illustrative Example
- Measures Against Thin Capitalization
- Common Application Problems
- Advances by Parent Companies is It Debt or Equity
- Existing Approaches to Limiting Interest Deductions
- What the Income Tax Act provides
- Comparative Analysis for Selected Countries
- Anti Avoidance Rules
What will i learn?
- The interest paid on loans and advances from related entities is not tax deductible to the extent that the total amount of loans/advances exceeds four times the amount of equity during the tax period. For purposes of determining the above, equity excludes provisions and reserves. This provision does not apply to commercial banks, financial institutions, and insurance companies.
Requirements
Curriculum for this course
0 Lessons
00:00:00 Hours