Show at B the deductible interest incurred on money borrowed from overseas sources to:
- acquire income-producing assets
- finance operations, or
- meet current expenses.
The fund should generally withhold an amount of tax (withholding tax) from interest paid or payable to non-residents, and from interest paid to a resident which was derived by the resident through an overseas branch. The fund must remit these amounts to the Tax Office.
Record keeping
If the fund paid interest to non-residents, keep a record of the:
- name and address of recipients
- amount of interest paid or credited, and
- amount of withholding tax withheld, and the date it was remitted to the Tax Office.
- If you have withheld amounts from payments to non-residents, you may need to lodge a PAYG withholding from interest, dividend and royalty payments paid to non-residents - annual report by 31 October 2009. For more information, phone the Business Infoline on 13 28 66.