I’ve had to look at some case law before I agreed with that Boss, if you’ve been in Tax for 30 years , you’ll remember Ferguson v the Commissioner. Just because your a lousy business guy, and use draconian interest rates , doesn’t mean you are can’t deduct credit card interest . I’d be surprised if The commissioner told taxpayers which money lender he should or shouldn’t use , irrespective of a persons poor business and financial judgement.
And on the flip side, the only view the Commissioner will take on a loan sharking operation , is that the profits from the operation are shown assessable income
