The Tax Specialist

Articles from the current issue:

• Overcoming the challenges and barriers to purchasing low-emission vehicles

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  Most Australian states are aiming to transition to net zero greenhouse gas emissions by 2050. To achieve this target, the states need to transition to cleaner transportation by overcoming the challenges and barriers to purchasing low-emission vehicles. This article examines issues and barriers affecting the deployment of electric and low-emission vehicles in Australia, with a special focus on the states, in particular Western Australia, as constitutional power over transport is assigned to the states. The article suggests tax and regulatory options by exploring lessons from European countries. Without appropriate policies in place to encourage the uptake of low-emission and electric vehicles, Australia could be left behind in the transition to cleaner transportation.

• Burton v FCT – The death of the Aussie trust in international tax planning

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  Burton v FCT is one of the most impactful tax cases of the last decade. It will have a dramatic impact on the manner in which Australian and foreign capital utilises Australian structures to invest in US assets. In this article, the author explores the impact of the case on the derivation of US sourced capital gains by the trustee of an Australian discretionary trust and what this will mean for the future of trusts when it comes to international tax planning for private clients.

• Myer isolated transactions doctrine (first strand) at 33-year anniversary

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  A third of a century has now passed since the momentous High Court decision in FCT v The Myer Emporium Ltd. For many reasons, the case is significant. It could also be argued, as many have, that the decision expanded the income concept and/or changed the courts’ approach to characterising the income-capital boundary for isolated transactions. (It may also be argued that it introduced a new income principle in the form of (now known as) the second strand.) Many students of tax, tax academics, tax practitioners and tax judges are still grappling with the isolated transactions doctrine in Myer. In part, this is due to gaps in the articulation of the isolated transactions doctrine in Myer itself, and in subsequent cases. While the recent Full Federal Court decision in Greig v FCT contributes to settling the nature and scope of the isolated transactions doctrine, the majority decision has also highlighted areas that require further judicial consideration and decision-making. This article aims to fill some of the
  gaps by first identifying them, and from there, suggesting the preferred approach to filling those gaps. The article also highlights areas of the doctrine that require further judicial articulation.

• Getting your estate planning right in the COVID-19 crisis

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  The advent of the COVID-19 crisis has presented all sorts of challenges to advisers and their clients. This article explores the impact of the COVID-19 crisis and the implications for estate planning and the importance of reviewing an estate plan in place when a significant event, like a pandemic with economic consequences, occurs. There would be many estate plans formed prior to COVID-19 which should now be reviewed post-COVID. The article also explores practical issues arising from difficult and sensitive scenarios including: when a relationship breaks down and the impact on the estate plan; whether you can future-proof inheritances and protect the “family jewels” through binding financial agreements or other means; and when the “Bank of Mum and Dad” comes along to help out the family. As a final point, the article observes the value of helping clients to take a step back and conduct a “health check” of their succession plan in this unpredictable environment.