Key learnings from ATO Determinations
The non-arm’s income rules, or NALI, have been around for decades. Despite that, historically, they have been rarely invoked by the ATO and largely ignored by many advisors and trustees.
However, in the last 10 years, NALI has become an increasing focus for both the ATO and the Government. This has culminated in the non-arm’s length expenses (NALE) law and the ATO’s views of those laws as set out in LCR 2019/D3.
This paper covers:
The NALI and NALE rules and their application to property development and unrelated trust arrangements
Case studies which have resulted in an ATO determination of NALI
Key ATO focus areas when considering the application of NALI
How to correctly structure an investment arrangement to avoid NALE and NALI
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