Borrowing to pay tax?

[ianvestor]

The original question doesn't say anything about borrowing from the ATO.

No, but the first reply does, hence the ensuing discussion.

 

[Rob G.]

So I'd guess if you borrowed from elsewhere to pay your tax bill, the interest would be deductible just the same.

This was the bit that worried me.

When is interest not interest ? ... when you get a curious decision that the GIC is an administration charge for the benefit of s.25-5.

Cheers,

Rob