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The profits first rule


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.

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Author Photo - David Russell CTA-Life
David Russell CTA-Life
David commenced legal practice in 1974. He is admitted to practise in Australia, England and Wales (Lincoln’s Inn), the Courts of the Dubai International Financial Centre, New York (as a Legal Consultant), New Zealand and Papua New Guinea. He was appointed Queen’s Counsel in 1986. David has acted for Commonwealth and State Governments as well as individuals and corporations and was the President of The Tax Institute from 1993 to 1995. Current at 01 October 2014 Click here to expand/collapse more articles by David RUSSELL.

This was presented at The New Business Taxation.

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The profits first rule

Author(s):  David RUSSELL

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