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 the latest issues affecting your role and your business, including:
- mergers and acquisitions
- international tax
- GST securitisation
- venture capital
- legal professional privilege
- Part IVA
- TOFA, and more.
Articles from the current issue:
01 Jun 2015
Multinationals with an Australian connection, whether Australian-based multinationals or foreign multinationals with a presence in Australia, face a range of taxation challenges. This article considers a number of such challenges. The article begins with an overview of the current tax climate for multinationals. The author then examines cross-border financing considerations for parents and subsidiaries, looking at hybrid financing, issues in relation to s 25-90 of the Income Tax Assessment Act 1997, as well as certain foreign exchange issues.
The article then considers some transfer pricing considerations in light of the Chevron case (the decision in which is currently reserved), the possible impact of the reconstruction provision in s 815-130 of the 1997 Act, and expanded documentation requirements. The article concludes with some thoughts on dealing with reputational risk, tax risk management and preservation of legal professional privilege.
01 Jun 2015
The valuation of specialised in situ fixed assets, such as a steel plant or an airport, is a complex and often controversial valuation exercise, but has important tax and duty consequences. The commonly-adopted bottom-up valuation approach, which assesses the market value of the collection of specialised in situ fixed assets as the sum of the assessed market value of the building improvements plus the assessed market value of the underlying land, however, has at least three pitfalls. First, it implicitly and incorrectly assumes that the going concern business which employs the specialised in situ fixed assets always has material goodwill value. Second, it overlooks the evolutionary nature of asset value. Third, it overlooks the relationship between size and highest and best use in assessing the value of the underlying land component. This article examines these problems in turn and suggests solutions designed to achieve a correct valuation outcome.
01 Jun 2015
Prior to the late 1990s, there were no specific provisions giving relief from significant tax exposures that arose when implementing corporate restructures. Since that time, the introduction of scrip-for-scrip relief (1999), the tax consolidation regime (2002) and demerger relief (2002) have without doubt facilitated numerous corporate restructures and takeovers that could not otherwise have been implemented.
This article focuses on some of the more important problem areas and anomalies that exist in the application of the scrip-for-scrip, demerger and consolidation provisions in the context of takeovers and corporate restructures. In addition, reference is made to some issues associated with distributions that may relate to a takeover or restructure. The article primarily focuses on restructures involving corporate entities, and does not seek to address issues that can arise in relation to transactions involving trusts or trust structures.
01 Jun 2015
Whether or not it is correct that the concepts of source and residence are losing their significance, residence for tax purposes is still an important question under Australian tax law, and one with significant consequences. This article focuses on the residence of corporations for Australian tax purposes. The traditional authorities on corporate residence, as well as the tax treaty position, are reviewed. The implications of the recent decision in Hua Wang Bank Berhad v FCT (currently under appeal) are discussed.
The article concludes with observations about the future of corporate residence principles. Internationally, the trends are towards transfer pricing-based source rules, territorial tax systems, and the lowering or abolition of permanent establishment thresholds. The author predicts that corporate residence will become less significant over time and concludes that this is consistent with the corporate tax’s character as a source tax.