Taxation Aspects of Financing Transactions Including Liquidations And Receiverships: The Lender's Perspective.

Abstract

A number of common kinds of financing transactions will be referred to so as to illustrate some of the taxation aspects arising under the Income Tax Assessment Act 1936 ("Assessment Act") from a resident financier's viewpoint. First considered are loans, bill facilities and convertible notes, with brief mention being made of share based financing transactions and arrangements involving unit trusts. Some reference is then made to the taxation aspects of interests secured by guarantees, mortgages and charges, with the position of mortgagees in possession being canvassed under the latter topic. Various taxation aspects of the offices of receiver and liquidator are then approached, followed by comments on some of the statutory provisions, canvassed to protect or prefer the Commissioner of Taxation, which those officers and secured creditors may need to consider.