Anti-avoidance principles - new directions for tax and business resulting from the High Court decision in Spotless
Article Abstract:
The High Court of Australia's ruling in Commissioner of Taxation v. Spotless Services may have broad implications for businesses engaged in practices which have the effect of reducing their tax liability. The Court found that the existence of a commercial purpose for a course of action does not preclude application of the general anti-avoidance provisions of the Income Tax Assessment Act 1936. The Court employed a test that assessed whether the dominant purpose was tax avoidance and found in the instant case that tax avoidance was the dominant purpose for the taxpayer's practices.
Publication Name: Australian Business Law Review
Subject: Law
ISSN: 0310-1053
Year: 1997
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Does government have a future in derivatives?
Article Abstract:
Many local governments are using derivatives to provide necessary funds for public services when taxes are low. However, derivatives come with risks as seen in the Orange County, Ca, bankruptcy and the audit of Hammersmith & Fulham, a local UK authority. The greatest risk is with leveraged derivatives, a technique that can have large returns but is also linked with many of the financial disasters. Governments need to learn from the disasters and establish rules for risk-taking and enforceability. Few governments are likely to follow the UK ban on derivative financing.
Publication Name: Australian Business Law Review
Subject: Law
ISSN: 0310-1053
Year: 1997
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The meaning of "share" in the ITAA trust income provisions: Is the issue finally resolved?
Article Abstract:
This article discusses the Zeta Force decision, which represents binding authority in Australian law for the proportionate view of the meaning of 'share' and "that share" in trust income provisions where the income of the trust estate is either less than or greater than the estate's net income. Also discussed is the need for legislative clarification of the trust income provisions.
Publication Name: Australian Business Law Review
Subject: Law
ISSN: 0310-1053
Year: 1999
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