Can an interest deduction be claimed for investing in a hybrid trust?
This movie explains the decision of the Full Federal Court of Australia in Forrest v Commissioner of Taxation. It is an important decision that was handed down on 5 February 2010. It concerned whether an individual could obtain an income tax deduction for interest on money borrowed to invest in a hybrid trust (a trust with both a discretionary and a fixed component).
In the movie you will see why the Commissioner argued that over $800,000 interest was not deductible and why the Administrative Appeals Tribunal said the Commissioner was correct. The taxpayer appealed to the Full Federal Court (3 judges) against this decision.
This case also has implications for the outcome of the Bamford case to be heard by the High Court.
[21.1 MB] [7 minutes 40 seconds] [Animated] [.wmv]
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