Publication date: 04 Jun 01 |
Source: THE TAX INSTITUTE
As a result of the Government's failure to introduce the Thin Capitalisation Measures during the budget session, they will operate retrospectively. This arises as the measures have effect from 1 July 2001.
"Even if they were introduced this week, it is unlikely Parliament will pass them in time to become law from 1 July," said Tax Director of the Taxation Institute of Australia, Mr Michael Dirkis.
International finance markets cannot wait until 7 June, 2001 or some future date for the introduction of the final form of these rules. International capital markets cannot take a country seriously if regulation in this crucial area of investment into Australia is governed by press releases and exposure drafts. Any further delays will only damage Australia's reputation further.
"What capital markets need now is certainty," said Mr Dirkis. "This is only provided by law not lore."