Eligible (infrastructure) investment business
Source: Taxation In Australia Journal Article
Published Date: 1 Aug 2014
This is one of a series of articles that will consider the tax issues associated with infrastructure ownership. We will suggest reforms that governments should consider to realise maximum value for these assets, without compromising future revenue through creating tax loopholes or providing overly generous tax concessions. This article discusses the application of Div 6C of Pt III of the Income Tax Assessment Act 1936 to infrastructure projects. Division 6C is concerned with income of certain trading trusts, and is an anti-avoidance measure, the purpose of which is to limit the forms of income that can benefit from “flow-through” taxation.
The article argues that the application of Div 6C to infrastructure assets introduces complexity, uncertainty and undue administration. These risks and costs necessarily translate into lower prices for infrastructure assets. The article contends that, if Australian taxpayers wish to maximise the value that they receive for privatised infrastructure assets, Div 6C needs to be reformed.
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
Details
- Published By: Chris Mclean
- Published On:1 Aug 2014
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