Income tax: deductibility of interest expenses incurred by trustees on borrowed funds used to pay distribution to beneficiaries

Taxation Ruling TR 2003/9 was originally published by the Commissioner on 30 July 2003 following a request by the Board of Taxation that the Tax Office publish its view on the application of the tax laws in relation to the issue identified above.

The professional bodies expressed some concerns regarding the content of TR 2003/9, and the Tax Office undertook a review of the Ruling. Publication of TR 2005/D4 and the accompanying withdrawal of TR 2003/9 represent the culmination of that review.