This report explores the history of the taxation of derivative gains and losses - primarily section 1234A - as well as the capital gains preference, the straddle rules, the sale or exchange requirement, the extinguishment doctrine, the assignment of income and substitute for ordinary income...

Virgin Holding SA v. Commissioner of Taxation was a decision in the Federal Court of Australia in late 2008. It concerned a very important issue in the interpretation of the Australia-Swiss double taxation conventions. This was whether the term "income tax" included tax on capital gains. The...

The international debate on tax avoidance lately is focused on digital business models. In the G20/OECD Inclusive Framework on BEPS 137 countries are currently developing the so-called Unified Approach to address the tax challenges arising from the digitalization of the economy. The aim of this...

In short sales, capital gains are realized upon the replacement of the borrowed stock, and not upon its disposition by the short seller. Therefore, a taxpayer can simultaneously own a share of stock and short sell an identical stock to effectually dispose a share of stock without triggering a...

This article tries to find a new way through old arguments about whether or not New Zealand should have a realization-based capital gains tax. Instead of revisiting the first-principles analysis of the costs and benefits of a capital gains tax, it starts by observing that many countries have...

The Ralph Committee, consisting of three leading Australian businessmen, John Ralph (Chairman), Rick Allert and Bob Joss, was established in 1998 to make recommendations on reforms to the Australian tax system. Relevantly, the Ralph Committee sought to achieve three national taxation objectives:...

Exempting capital gains from taxation clearly favours large established business at the expense of new and small business, and promotes an increasing concentration of wealth at the expense of low and middle income taxpayers . The business submissions to the Government’s Tax Review 2001 though...

In the current US tax system, capital gains are taxed at a lower rate than ordinary income. What does that mean for the sale of IP and intangible assets? Is it possible to convert ordinary income to capital gain by changing the form of the transaction? This article will address anomalies in the...

One response to uncertainty and transactions costs in VC-finance is to compensate founders and other key personnel with stock options under complex contracts. Entrepreneurs are granted stock options contingent on firm performance, vesting and other criteria. While most countries tax stock...

On 31st December 2021, the President of Nigeria, Muhammadu Buhari signed into law, the Finance Act, 2021 (the “Finance Act”). The enactment of the Finance Act is an indication of the strong drive of the Federal Government of Nigeria to shore-up her budget deficit, boost revenue generation...