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Losing my Losses: Are the loss restriction rules applying to Australia's tax transparent companies adequate?


It has been argued that the Australian government prefers an entity tax approach for business forms providing member(s) with limited liability and separate entity status. This contrasts a number of foreign jurisdictions that have provided tax transparency to such business forms (‘tax transparent companies’), with income and/or losses directly allocated to members for tax purposes. Examples of foreign tax transparent companies include S Corporations and Limited Liability Companies in the United States, Limited Liability Partnerships in the United Kingdom; and Loss Attributing Qualifying Companies and new limited partnerships in New Zealand.

Author profile:

Author Photo - Brett Freudenberg CTA
Dr Brett Freudenberg CTA
Brett works at the Department of Accounting, Finance and Economics, Griffith Business School, Griffith University. In addition to his taxation teaching, Brett was awarded a PhD for his research into tax transparent companies in the US, the UK and New Zealand, and how Australian closely held businesses may benefit from their introduction. In 2009 Brett was invited to present his PhD research findings to the Australian Treasury as part of the Henry Tax Review. In 2006 Brett received a Fulbright Award, which saw him conducting research at the University of Illinois to analyse the proliferation of new business forms in the United States and their potential application for Australian businesses. Brett has published refereed articles in leading Australian and international tax journals. In addition to his tax expertise, Brett has received a number of teaching accolades, including in 2008 a national teaching citation from the Australian Learning & Teaching Council for his outstanding contributions to student learning. Current at 01 July 2016 Click here to expand/collapse more articles by Brett FREUDENBERG.
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