The Australian Taxation Office (ATO) has published guidance on Understanding the debt deduction creation rules (DDCR) to help determine if the DDCR applies to an entity and its related party financing arrangements.
The guidance includes the following:
- Debt deduction creation rules: Learn the debt deduction creation rules (DDCR) for certain related party financing arrangements.
- How the DDCR works: Learn the types of arrangements where the debt deduction creation rules (DDCR) apply to an entity.
- Type 1 DDCR: Acquisition case: When to apply the Type 1: Acquisition case under the DDCR.
- Type 2 DDCR: Payment or distribution case: When to apply the Type 2: Payment or distribution case under the DDCR.
- The DDCR anti-avoidance rule: See how the DDCR anti-avoidance rule applies to debt deductions.
- DDCR concepts and terms: Check concepts and terms, including associate pairs and modified definitions, when applying the DDCR.
- Reporting and guidance on the DDCR: See how to report on the debt deduction creation rules (DDCR) using an IDS or RTP.
