The profits first rule

Published on 15 Feb 00 by QUEENSLAND DIVISION, THE TAX INSTITUTE

The "profits first" rule had its genesis in two unrelated policy developments. The first was the abolition of the requirement of maintenance ofcapital in the Corporations Law. The second was the decision of the government to establish a common regime of taxation of all entities, which meant that entities which had never had such rules as part of their own structure (and in particular trusts) had to be fitted within a common framework. This paper examines the analysis of the entity taxation system set out in A Platform for Consultation, the 2nd Discussion Paper of the Ralph Review of Business Taxation.

Author profile

David Russell CTA-Life

David was admitted as a solicitor in 1974 and was called to the Bar in 1977. He was appointed Queen’s Counsel in 1986. David has lectured and written extensively on taxation related topics in Australia and overseas. David is a Barrister, Wentworth Chambers. - Current at 01 October 2014

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