2008

Capital Versus Revenue: The Sun Never Sets

Source: Victoria

Published Date: 16 Apr 2008

 
A number of recent cases have focused on the pivotal question of capital versus revenue. Even after so many years, the distinction between capital and revenue is still a critical issue of direct relevance to corporate taxpayers.

The Honourable Justice Pagone focused on recent key cases and their implications, and Gordon Thring of Deloitte addressed legislative amendments that change the impact of the capital revenue distinction on corporate groups.

Issues covered included:

  • the tax consolidation provisions, including implications for ACA push down, the application of the single entity rule in grouping activities, the implications on a disposal of shares by a head company, and the application of certain specific tax consolidation CGT events where shares held are not "capital" assets
  • the possible breadth of McNeil's case and its application to other examples, including the exempt portion of capital gains distributed by trusts
  • the capital gains tax (CGT) provisions in relation to widely held entities, including recent ATO views in relation to the application of the provisions to listed investment companies and managed funds and the potential implications for other taxpayers
  • the CGT provisions in relation to applying certain rollover provisions and exemptions included only under the CGT regime
  • the importance of the "capital"? classification of expenditure when examining the blackhole expenditure provisions.

Justice Hill Memorial Lecture: Income and capital distinction

Author(s): Tony Pagone QC

Details

  • Published On:16 Apr 2008
  • Took place at:RACV Club, Melbourne

The material is copyright. Apart any fair dealing for the purpose of private study,

research critisism or review, as permitted under the copyright Act, no part may be rerpoduced 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.

This material is copyright. Apart from any fair dealing for the purpose of private study., research, critisism or review, as permitted under teh copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opininons are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

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