In-house Finance Companies

It is no secret that the Australian Taxation Office (“ATO”) has been concerned for some time about the tax issues arising from in-house finance companies operating within large listed groups.  A recent decision of the Federal Court involving an in-house finance company in the BHP Billiton group has, at least for the moment, stalled the ATO’s efforts to insist on its view of the way the tax issues should be addressed.  It also offers the first judicial guidance on the operation of the relatively recent limited recourse debt rules.  For our full Tax Brief - click here