Fragmenting the Pt IVA lore applying to stapled structures
Source: The Tax Specialist Journal Article
Published Date: 1 Aug 2017
In TA 2017/1, the Australian Taxation Office expressed concern with arrangements which attempt to fragment integrated trading businesses in order to re-characterise trading income into more favourably taxed passive income. Among such arrangements, the ATO singled out stapled security structures, of which it identified four types: financing, rentals, royalties, and synthetics. The Commonwealth Treasury is also currently consulting on the integrity risks regarding the use of stapled structures. In that context, this article is concerned with rental stapled structures, and the extent, if any, to which Pt IVA of the Income Tax Assessment Act 1936 might apply to such structures. The author seeks to address what are seen as shortcomings and a lack of analysis in the ATO's apparent views on the matter, as expressed in its public pronouncements. The article identifies types of rental stapled structures and analyses the possible application of Pt IVA to them.
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
- Published By: Stuart Dall
- Published On:1 Aug 2017
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
Share this page