Growing businesses are faced with a multitude of ways of funding expansion. Often the taxation implications will determine which funding structure is to preferred. The matters covered in this presentation include:
- Interest deductibility - when is interest not interest
- Tax timing advantages (sections 8-1, 25-85 and 82KK)
- The debt/equity rules and their impact on deductibility of funding costs
- Capital injections and value shifting
- Financing distributions to owners