Published on 01 Jan 06
by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
The paper explores the adequacy law of residency of companies in s 6(1) of the Income Tax Assessment Act 1936. The paper concludes that the definitions are inadequate when judged against the tax policy objectives of simplicity and the prevention of tax avoidance. The 2002 Review of International Taxation Arrangements (RITA) has done little to alter this view. However, the paper concludes that although there is scope to modify the law within the jurisdictional framework so that it more closely meets the tax policy objectives, ultimately the reform solution lies with a new, clear articulation of Australia’s jurisdictional claim based upon robust tax policy objectives.
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