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A busines is a separate entity - a company which would be paying you a wage. This is different to the situation of not paying interest on an investment loan so that you can pay down personal expenses faster.

Very closely related. Harts is one case law precedent for the definition of a 'scheme'.

Strange but I have heard similar too. One person added a new kitchen, when I asked why she said her accountant recommended it as she was making a profit.

Aaron, those pens you bought at the end of the financial year to bring forward $5 in deductions could have been done with the dominant purpose of tax savings:)

I think even negative gearing could be a scheme with a dominant purpose of making tax deductions.

http://law.ato.gov.au/atolaw/view.htm?docid=%22TXD%2FTD20121%2FNAT%2FATO%2F00001%22 and, http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1936240/s177d.html

Nope. The ATO is targeting an arrangement whereby someon borrows from a LOC to pay the interest on the investment property which then frees up cash from rents etc which can be paid into the offset/home loan to pay it off sooner.

Sorry about the ? http://somersoft.com/forums/search.php?searchid=5302857

See the other threads on TD 2012/1. Your heading to the threat is misleading, the ATO hasn't rejected capitalisation. It is still possible, but if it is done as a scheme with a dominant purpose of paying off the home loan sooner then they can deny the extra deductions.