Published on 30 Jan 02
by THE TAX INSTITUTE
This Ruling examines schemes connected with intellectual property. Specifically, it examines tax benefit transfer arrangements under which taxpayers, with limited or no financial exposure to the success or failure of the commercialisation of the intellectual property, enter into contrived arrangements to obtain the benefit of deductions from developers of intellectual property who cannot benefit directly under Division 40 of Part 2-10 of the Income Tax Assessment Act 1997 ('ITAA 1997'). These arrangements distort the tax concession intended by Division 40 and are considered to be tax avoidance schemes.
INSTITUTE OF CHARTERED ACCOUNTANTS IN AUSTRALIA
NATIONAL INSTITUTE OF ACCOUNTANTS
TAXATION INSTITUTE OF AUSTRALIA