Concepts of Residence & Source into the 21st Century
The Hon. Justice Ian GZELL
The concepts of residence and source are fundamental to the design of taxation structures. Theoretically a country can levy taxes on any person it chooses with respect to any economic activity or asset and wherever situated. But the pragmatic problems of enforcement with respect to subjects or objects of taxation beyond the borders of a country have led to the establishment of two basic principles which determine fiscal structures: the source principle and the residence principle.
This paper comments on the commercial and legislative environment in which Australian companies operate, particularly in relation to conducting business outside Australia in countries which are listed in Schedule 10 to the Income Tax Regulations.
This presentation covers:
- focus on global tax cost
- Australian investor profile
- foreign country aspects of doing business
- use of holding companies
- Australian tax issues.
This paper not so much seeks to address the basic issues in planning inbound investment but attempts to focus on current investment structures and various technical concerns with certain structures. This paper also seeks to project into the future by assessing taxation risks of various planning techniques and thereby lays a foundation for planning based on risk minimisation and current international trends.
Richard J VANN
This paper considers a number of emerging issues in international tax law as a window on the future of international taxation. The discussion begins within tax treaties, looking at how they are coping with two
increasingly important issues in international taxation - high value services and international tax administration. Then the discussion looks at tax treaties and international taxation from without - noting the growing influence of international trade and other instruments on taxation and the international institutions that are quietly shaping the international tax order in a way that moves tax sovereignty from the national to the international level.
ATO's approach to international tax into the future
It is reasonable to expect that the ATO will be reviewing how the various 'chunks' of the international tax regime are operating in practice and that it will draw any problems to the attention of policy makers. The ATO has been undertaking reviews based on overall trends, industry studies, tax return data and casework. This paper is a distillation of some of this research and experience.