Published on 01 Jan 94
by Australian Tax Research Foundation
This study is a contribution to the debate which was created by the release of Taxation of Financial Arrangements: a Consultative Document by the Australian Tax Office. The paper raises a number of important questions which needed to be resolved before the debate on this issue could be settled. The paper argues that the current system for taxing financial arrangements is ad hoc and haphazard. However, the paper suggests that the ATO proposals in the consultative document are inadequate, particularly the failure to adequately account for compliance costs and its non-neutral for impact.