In Australia, the cost of repairing an asset used to produce assessable income is immediately deductible under s 25-10 of the Income Tax Assessment Act 1997. To claim this deduction, the repairs must not be of a capital nature. The courts have developed three tests to distinguish repair costs...

The nature of “goodwill” for tax purposes was an important issue in Australia long before the adoption of the Commonwealth income tax, with the relationship between goodwill and sales of business premises a central issue in colonial stamp duty assessments (and consequent litigation)....

In this article, the authors discuss a recent Australian High Court case and argue that Australia's legislative framework dictating the distinction between capital and current expenses is inadequate and poses unnecessary judicial roadblocks.The High Court of Australia's October 16 decision in...

One of the fundamental aims of any income tax system is to measure the net income earned by taxpayers during a given financial year. This can be difficult for primary production businesses involving live animals because animals are inherently different from other kinds of assets. Whereas...

The OECD recommended various rules that countries can adopt to combat hybrid mismatch arrangements in their domestic tax system. However, its success would not come when the integrity measure, namely “imported mismatch rules”, does not operate as intended. This article examines how the...

The controlled foreign company (CFC) regime operates to overcome the situation where resident investors defer or avoid paying tax on their foreign sourced income by retaining profits within their controlled companies abroad. However, its prescriptive approach is concerning as we enter the...