The Tax Specialist
Designed for the specialist tax professional, The Tax Specialist journal is essential reading for corporate tax advisers, accountants, lawyers and academics. Featuring in-depth analysis, opinion and argument on legislative, administrative and judicial issues it is published five times per year and is available by subscription. Also known as the Red Journal.
The Tax Specialist covers topics such as:
- mergers and acquisitions
- international tax
- GST securitisation
- venture capital
- legal professional privilege
- Part IVA
- TOFA, and more.
Articles from the current issue:
01 Feb 2015
The rule against perpetuities, which operates to invalidate interests which vest too remotely, has been modified by statute in some jurisdictions, and abolished, in whole or in part, in others. The purpose of this article is to examine what problems may arise in the establishment of an investment trust in the form of a discretionary trust to be governed by the law of a jurisdiction that has abolished the rule, with a view to dispensing with the usual vesting date for such a trust. For purposes of illustration, the article refers to the laws of Queensland, South Australia and Missouri, and deals with issues that such a trust would raise in respect of investment property (real or personal) locally situated in Australia.
The article discusses the rule against perpetuities, questions of choice of law, and the application of the Hague Convention on the Law Applicable to Trusts and on their Recognition
01 Feb 2015
The Full Federal Court decision in Resource Capital Fund III LP v FCT in 2014 concerned a foreign limited partnership which made capital gains from selling a shareholding in an Australian mining company. The court held that the capital gains were properly taxable in Australia. This case is relevant to the taxation of cross-border investments through “hybrid entities”, and investments by non-residents into Australia, particularly in the resources and property sectors. It also has important implications for the interpretation of Australia’s tax treaties where Australia and another contracting state adopt different approaches to taxing a hybrid entity.
This article examines the issues arising from the RCF case. It also considers the potential implications of the events that have occurred in the aftermath of the case, including actions currently being undertaken as part of the OECD’s “base erosion and profit shifting” project, as well as the Australian Government’s legislative response to this case.
01 Feb 2015
Part IVA, the general anti-avoidance provision, of the Income Tax Assessment Act 1936 (Cth) was substantially amended in 2013 to eliminate some “perceived weaknesses” identified by the Australian Taxation Office in the then-existing provision. The 2013 amendments have themselves, however, raised many issues of statutory construction. The purpose of this article is to examine some of the most important issues likely to arise from the amendments, and to apply them in practice. The first part of the article provides context by way of presenting an overview of Pt IVA, and then explaining the relevant issues in detail, with reference to the decided cases. These include questions of determination of the tax benefit, statutory choice principles and purpose. The second part of the article then sets out worked examples of how Pt IVA, following the 2013 amendments, might apply to three real-world situations, namely, pre-sale dividends, share/asset sales, and funding choices.