TAX MATTERS: Thin capitalisation rules

https://fingaz.co.zw/wp-content/uploads/penci-text-to-speech/post-281521.mp3?cb=1732288235.mp3Companies usually finance their operations either by debt or equity. Where a company is financed primarily by debt it is deemed to be thinly capitalised. Thus, thin capitalisation can be described as the use of high proportions of loan to equity capital to gain tax advantages. Advertisements The Income Tax Act discourages thin capitalisation by…