Published on 12 Mar 09
by NATIONAL DIVISION, THE TAX INSTITUTE
To date, the focus of our tax system has been on transactions involving assets, with only limited attention being given to liabilities. Recent legislative developments are addressing this imbalance, albeit in a piecemeal fashion. This presentation deals with:
- ambiguities raised by the way in which the tax system has traditionally dealt with liabilities
- how liabilities alter tax outcomes on asset and entity acquisition transactions
- the proposed TOFA treatment of liabilities
- options for a more consistent tax treatment of liabilities.