Published on 01 Nov 14
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Equity investors in Australian infrastructure commonly seek protection of their investments by obtaining some certainty over the investment vehicle’s governance and its operations, through entering agreements covering these areas. The ATO has expressed the view that the protections employed by minority equity investors may confer on individual investors the control (“negative control”) of the vehicle and its operations. This article explores the ATO’s views and considers whether an alternative view is open, one which would provide greater certainty, and which would not have an unreasonably adverse impact on infrastructure investment.
The article considers the ATO’s views on the concept of control in the context of the public trading trust regime, and the thin capitalisation regime. The authors then provide a deeper analysis, and conclude with a discussion of possible ways to undo or mitigate the uncertainty caused by the ATO’s position.
Hayden is a Director of Greenwoods & Freehills Pty Limited. He advises listed entities in the energy & resources
and financial services industries on income tax issues raised in M&A, funding, special project and general corporate
tax matters. His areas of interest and expertise include the taxation of financial arrangements (all four tranches) and tax
consolidation. Hayden is a member of the NTLG Finance & Investment Subcommittee and it’s TOFA Working Party. He
also chairs the Taxation Institute’s Education Committee (Victoria). Hayden frequently presents and is regularly published on
corporate income tax matters.
Current at 9 February 2009 Current at 14 May 2009
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Current at 13 July 2014
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Jack is a Consultant with PricewaterhouseCoopers.
Current at 1 November 2014 Current at 04 November 2014