Your shopping cart is empty

Actual v deemed - The edge of reality


Deeming is a legislative technique which creates a legal fiction for taxation purposes, and affixes the liability of a taxpayer by reference to the altered reality. There are many uses of deeming in Australian income tax legislation. In some instances, the deemed tax result relieves the normal tax result which would apply to a commercial outcome, in a manner which favourably avoids a tax liability for unrealised or non-cash impacts. In other instances, the deemed tax result preserves the tax status of assets, notwithstanding a new reality, for example, by favourably preserving the pre-CGT status of assets. Provisions of the taxing Acts which focus attention on a state of affairs “at the time” especially leave open the possibility that the referenced time for tax purposes may be an actual time (the commercial outcome) or deemed time (the deemed world of tax).

This article studies and attempts to define the rule(s) for deeming in timing provisions.

Author profile

Dr Damien Lockie CTA-Life
Dr Damien Lockie, FTIA (Life), is a Barrister-at-Law at the Victorian Bar and an Adjunct Professor of Law at Bond University. Dual qualified in law and accounting, Damien has over 30 years experience as a Solicitor, Accountant and advocate specialising in property and environmental laws and federal and state revenue laws. - Current at 01 March 2012
Click here to expand/collapse more articles by Damien L LOCKIE.


Copyright Statement