Miscellaneous 2013

Actual v deemed - The edge of reality

Source: The Tax Specialist Journal Article

Published Date: 1 Jun 2013

 

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.

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

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

Miscellaneous 2013

Share this page