CAPITAL GAINS TAX — ASPECTS OF CERTAIN FINANCING TRANSACTIONS

1988 ◽  
Vol 28 (1) ◽  
pp. 382
Author(s):  
Peter A. Wilson
Keyword(s):  
Income Tax ◽  
Capital Gains ◽  
Petroleum Exploration ◽  
Capital Gains Tax ◽  
Additional Information ◽  
Tax Assessment ◽  
Net Profit ◽  
Petroleum Companies ◽  
Petroleum Company ◽  
Full Consideration

The Australian Income Tax Assessment Act, 1936 (the Act) has recently been amended by the inclusion of a full capital gains tax system.This system is particularly applicable to various aspects of financing transactions into which petroleum exploration and development companies may enter.In the light of recent changes to the means by which petroleum companies can access the capital markets, it becomes necessary to consider these issues. This paper is designed to provide petroleum company executives with additional information on the capital gains tax aspects of:creating royalty, net profit interests and production payments;conventional security management matters;bankruptcy/liquidation matters;allotment of ordinary and preference share issues;allotment of convertible notes;drawing down of conventional loans; andgroup reorganisations.The paper also sets out some recommendations for amendments to the Act designed to correct capital gains driven financing problems.These aspects and many other relevant planning points require consideration of complex legislation. In the absence of direct legal precedent, proper and full consideration is warranted if all intended financial problems are to be firstly, recognised and secondly, to the extent possible, overcome.

TAXATION CONSIDERATIONS FOR AN AUSTRALIAN COMPANY CARRYING ON PETROLEUM EXPLORATION AND DEVELOPMENT IN PAPUA NEW GUINEA

1987 ◽  
Vol 27 (1) ◽  
pp. 35
Author(s):  
Peter A. Wilson
Keyword(s):  
Papua New Guinea ◽  
New Guinea ◽  
Petroleum Exploration ◽  
Credit System ◽  
Tax Assessment ◽  
Full Credit ◽  
Financial Benefits ◽  
The Many ◽  
Full Consideration ◽  
Australian Company

The Australian Income Tax Assessment Act, 19S6 (the Act) has recently been amended by the inclusion of a full foreign tax credit system (FTCS) to replace the partial and exempt system previously existing. In view of this change, and the increase in Australian participation in Papua New Guinea (PNG), petroleum exploration re-consideration of conventional corporate structuring into PNG is warranted.In considering the form of a tax effective structuring, it will be necessary to consider matters such as the following:obtaining an appropriate mix of debt and equity with the debt provided in a form so that the service fee will not qualify as interest for FTCS purposes;structuring the PNG operations through a subsidiary incorporated out of Australia, e.g. PNG;ensuring that the shareholding in the company is appropriate to enable a full credit for 'underlying taxes'; andobtain any 'tax sparing relief available due to the PNG treatment of interest and dividends.These aspects and the many other relevant planning points require consideration of complex legislation. In the absence of direct legal precedent, proper and full consideration is warranted if all intended financial benefits are to be obtained.

11. Taxation of trusts and settlements

2018 ◽  
Author(s):  
Kathryn Wright ◽  
Clare Firth ◽  
Lucy Crompton ◽  
Helen Fox ◽  
Frances Seabridge ◽  
...  
Keyword(s):  
Income Tax ◽  
Capital Gains ◽  
Capital Gains Tax ◽  
Inheritance Tax

Settlements may be created by settlors in their lifetime, or by will, or they may arise under the intestacy rules. This chapter considers the tax implications of such settlements from the perspective of both the trustees and the beneficiaries. It considers each of the three main taxes separately: inheritance tax, capital gains tax, and income tax.

11. Taxation of trusts and settlements

2017 ◽  
Author(s):  
Kathryn Wright ◽  
Clare Firth ◽  
Lucy Crompton ◽  
Helen Fox ◽  
Frances Seabridge ◽  
...  
Keyword(s):  
Income Tax ◽  
Capital Gains ◽  
Capital Gains Tax ◽  
Inheritance Tax

Settlements may be created by settlors in their lifetime, or by will, or they may arise under the intestacy rules. This chapter considers the tax implications of such settlements from the perspective of both the trustees and the beneficiaries. It considers each of the three main taxes separately: inheritance tax, capital gains tax, and income tax.

scholarly journals Effect of Corporate Income Tax Incentives on Investment in Rwanda

2018 ◽  
Vol 5 (4) ◽  
pp. 1
Author(s):  
Jean Bosco Harelimana
Keyword(s):  
Private Sector ◽  
Income Tax ◽  
Value Added ◽  
Secondary Data ◽  
Sampling Technique ◽  
Tax Incentives ◽  
Capital Gains ◽  
Corporate Income Tax ◽  
Manufacturing Companies ◽  
Capital Gains Tax

The purpose of this study was to establish the effect of corporate income tax incentives on investment using privatesector manufacturing companies in Kigali special economic zone, Rwanda. The study adopted descriptive researchdesign and the study population comprised of thirty-nine manufacturing companies in free zone in Rwanda which areregistered by the private sector. The sample size comprised of 36 private companies determined from a totalpopulation of 39 companies. Only two employees that are acquainted with decision making from each manufacturingcompanies registered by the private sector were targeted hence the target population respondents was 72 respondents.The Stratified random sampling technique was used to select the respondents. Data was collected from both primaryand secondary data using questionnaires and documentation. The findings in the study revealed that tax incentiveshave significant positive effect on investment in private sector manufacturing companies in Rwanda. The p -valuesfor all the variables are lower than 5% this implies that are significant. From the study the p-values are 0.009, 0.000,0.003 and 0.000 for company income tax, capital allowance, value added tax and capital gains tax incentivesrespectively. The capital allowance incentive has the highest t value of 4.656, followed by company income taxincentives with 3.954, and next is capital gains tax incentives with 3.184, while the lowest is the value added taxincentives with 2.954. Based on the empirical evidences and results of the analysis, there is positive and statisticallysignificant relationship between the tax incentives and investments. The study recommends that Government andpolicy makers should concentrate on efforts at ensuring that more CIT incentives and strategies that are specificallyaddressing small and medium enterprises are introduced.

Tax issues impacting acquisitions in the Australian oil and gas industry

2011 ◽  
Vol 51 (2) ◽  
pp. 669
Author(s):  
Chad Dixon
Keyword(s):  
Income Tax ◽  
Oil And Gas ◽  
Investment Decision ◽  
Oil And Gas Industry ◽  
Capital Gains ◽  
Capital Gains Tax ◽  
Gas Industry ◽  
Resource Rent ◽  
Goods And Services ◽  
Petroleum Resource

Understanding the tax implications and structuring options of a transaction is critical when assessing and comparing new opportunities. When undertaking any transaction involving Australian oil and gas assets, the applicable taxation regime should be carefully explored and understood. From an Australian perspective, taxes such as corporate income tax, petroleum resource rent tax, capital gains tax, and goods and services tax have significant potential to influence the investment decision. This presentation will focus on the tax implications applicable to the acquisition and disposal of Australian oil and gas assets, providing valuable insights for both Australian companies and inbound investors.

29. Sale of a business to a company

Business Law ◽  
2021 ◽  
pp. 294-299
Author(s):  
J. Scott Slorach ◽  
Jason Ellis
Keyword(s):  
Cash Flow ◽  
Income Tax ◽  
Capital Gains ◽  
Capital Gains Tax ◽  
Flow Problems ◽  
Stamp Duty ◽  
A Company

A sole trader or partnership may decide, for a variety of reasons, to incorporate the business. Incorporation will give rise to a number of tax and other problems. This chapter considers these problems and how they can be avoided, or at least mitigated. It shows that the tax rules are the most important consideration in this area, since if they are not appreciated, an unexpected tax bill can cause very serious cash flow problems. They include rules on income tax, capital gains tax, VAT, and stamp duty/stamp duty land tax.

20. Taxation in Family Law

Family Law ◽  
2020 ◽  
pp. 207-211
Author(s):  
Roiya Hodgson
Keyword(s):  
Income Tax ◽  
Family Law ◽  
Capital Gains ◽  
Capital Gains Tax ◽  
Taxable Income ◽  
Stamp Duty ◽  
Financial Settlement

Family law practitioners must be aware of the tax implications of any financial settlement and make it tax- efficient for the client. This chapter examines the types of tax most relevant to family law. Income tax is a type of tax paid on taxable income and, the basic personal allowance, as well as the higher and further rates, are discussed. Capital gains tax (CGT) arises on disposal of an asset or the receipt of money in respect of an asset if there is a ‘chargeable gain’, and examples of these are listed, as well as the relation of CGT and sponses/civil partners/family assets. Inheritance taxand stamp duty land tax are also discussed.

29. Sale of a business to a company

2019 ◽  
pp. 294-299
Author(s):  
J. Scott Slorach ◽  
Jason Ellis
Keyword(s):  
Cash Flow ◽  
Income Tax ◽  
Capital Gains ◽  
Capital Gains Tax ◽  
Flow Problems ◽  
Stamp Duty ◽  
A Company

A sole trader or partnership may decide, for a variety of reasons, to incorporate the business. Incorporation will give rise to a number of tax and other problems. This chapter considers these problems and how they can be avoided, or at least mitigated. It shows that the tax rules are the most important in this area, since if they are not appreciated the payment of an unexpected tax bill can cause very serious cash flow problems. These include rules on income tax, capital gains tax, VAT, and stamp duty/stamp duty land tax.

20. Taxation in Family Law

2018 ◽  
pp. 207-211
Author(s):  
Jane Sendall
Keyword(s):  
Income Tax ◽  
Family Law ◽  
Capital Gains ◽  
Capital Gains Tax ◽  
Inheritance Tax ◽  
Stamp Duty ◽  
Financial Settlement

Family law practitioners must be aware of the tax implications of any financial settlement and make it tax- efficient for the client. This chapter discusses the types of tax most relevant to family law, including income tax, capital gains tax, inheritance tax, and stamp duty land tax.

scholarly journals Non-Residents and Capital Gains Tax in Australia

2019 ◽  
Vol 67 (1) ◽  
pp. 1-22
Author(s):  
Richard Krever ◽  
Kerrie Sadiq
Keyword(s):  
Income Tax ◽  
Housing Prices ◽  
Capital Gains ◽  
Capital Gains Tax ◽  
Real Property ◽  
Tax Base ◽  
The First World War ◽  
Primary Driver ◽  
The Government ◽  
Definition Of

The evolution of capital gains taxation in Australia parallels that in Canada in many respects. Federal income taxes were adopted in both countries during the First World War, and in both jurisdictions the courts interpreted the term "income," the subject of taxation, using United Kingdom judicial concepts that excluded capital gains from the tax base. In the last quarter of the 20th century, both countries amended their income tax laws to capture capital gains, and in both countries concessional rates apply. Initially, the Australian capital gains tax regime had rules that paralleled those in Canada in respect of the application of capital gains tax measures to non-residents, and the list of assets that might generate a capital gains tax liability for non-residents was similar in both countries. Australia changed course just over a decade ago with a decision to limit the income tax liability of non-residents in respect of capital gains to gains on land and land-rich companies alone, albeit with an extended definition of land to capture directly related interests such as exploration and mining rights. Consequently, until this decade, reform of Australia's regime imposing capital gains tax on non-residents focused on the concept of source as a primary driver, with the categories of taxable assets being gradually reduced. However, after more than a decade of unprecedented increases in housing prices in Australia, reform has moved away from addressing source to integrity matters. In Australia, as in Canada, there has been considerable investment in property, particularly residential property, by non-residents in recent years, and the government has sought ways to enhance the enforcement and integrity of the capital gains tax rules applying to non-residents disposing of Australian real property. Since 2013, Australia has proposed three separate measures to ensure integrity within this regime: removal of a concessional rate, introduction of a withholding tax, and removal of the principal residence exemption for non-residents. This article considers the history and development of Australia's capital gains tax regime as it applies to non-residents and examines the recent shift in focus from what is captured in the capital gains source rules to integrity provisions adopted to achieve both compliance and geopolitical objectives.

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