Miscellaneous 2006

The Non-commercial Loss Provisions: A Lesson In Collateral Damage?

Source: Australian Tax Forum Journal Article

Published Date: 1 Sep 2006

 
This paper argues that there is a need for greater clarity on the policy objectives of the non-commercial loss provisions and that a lack of focus on policy has led to unacceptable collateral damage to smaller taxpayers. The crux of the problem lies within the continued uncertainty surrounding what it means to be “carrying on a business”. The argument is made that although clear guidelines in this area would provide the best solution, this outcome is inherently difficult to achieve. The “second best” solution lies in ensuring that Division 35 correctly targets the policy objectives of the government. The paper takes issue with both substantive and procedural aspects of the Board of Taxations’ Post Implementation Review of Division 35. Similar legislation in four other countries is canvassed in order to assess whether Australia could benefit from their experiences.
Author Profile
Linda Greenleaf

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now

Details

The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))

("TTI")

The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.

Tags

Miscellaneous 2006

Share this page