Australia Publishes Draft Law Companion Ruling for Base Rate Entities and Base Rate Entity Passive Income

The Australian Taxation Office has published draft Law Companion Ruling (LCR) 2018/D7 on base rate entities and base rate entity passive income in relation to the recently approved legislation on the eligibility requirements for Australia's reduced corporate tax rate ({News-2018-08-27/A/2-previous coverage}). LCR 2018/D7 provides advice on:

• the general scheme of the new law;
• what amounts of assessable income are 'base rate entity passive income' (BREPI);
• the meaning of rent, interest and wh…