Preface
Addendum
The Taxation Laws Amendment ACT 1985
Amendments Foreshadowed in Government Statements
Deferred interest securities, securities issued at a discount and indexed capital securities
Business fringe benefits
The Judicial Decisions
Summary of Contents
TABLE OF CASES
TABLE OF SECTIONS OF THE INCOME TAX ASSESSMENT ACT
PART I—PRELIMINARY
PART III—LIABILITY TO TAXATION
Division 1—General
Division 1A—Provisions Relating to Certain External Territories:
Division 2—Income
Subdivision A—Assessable Income Generally
Subdivision AA—Superannuation, termination of employment and kindred payments
Subdivision B—Trading Stock:
Subdivision C—Business Carried on Partly in and Partly out of Australia
Subidivision D—Dividends
Division 2A—Calculation of Taxable Income
Subdivision B—Calculation of Taxable Income where Disqualifying Event Occurs
Division 3—Deductions
Subdivision A—General
Subdivision AA—Contributions to Superannuation Funds for Benefit of Employees:
Subdivision AB—Contributions to Superannuation Funds by Eligible Persons:
Subdivision B—Investment Allowance:
Subdivision BA—Trading Stock Valuation Adjustment:
Subdivision C—Interest in Respect of Housing Loans:
Subdivision D—Losses and Outgoing Incurred under Certain Tax Avoidance Schemes:
Subdivision E—Deductions for Expenditure in Respect of Home Insulation:
Division 3A—Convertible Notes:
Division 4—Leases:
Division 5—Partnerships:
Division 6—Trust Income:
Division 6AA—Income of Certain Children:
Division 6A—Alienation of Income for Short Periods:
Division 7—Private Companies:
Division 8—Life Assurance Companies:
Division 9—Co-operative and Mutual Companies:
Division 9B—Superannuation Funds and Ineligible Approved Deposit Funds:
Division 10—General Mining:
Division 10AAA—Transport of Certain Minerals:
Division 10AA—Prospecting and Mining for Petroleum:
Division 10A—Timber Operations and Timber Mill Buildings
Subdivision A—Timber Operations
Subdivision B—Timber Mill Buildings: 10.428
Division 10B—Industrial Property:
Division 10BA—Australian Films:
Division 10C—Deductions for Capital Expenditure on Traveller Accommodation:
Division 10D—Deductions for Capital Expenditure on certain Income-Producing Buildings:
Division 11A—Dividends and Interest Paid to Non-residents and Certain other Persons:
Division 11C—Payments in Respect of Mining Operations on Aboriginal Land:
Division 12—Overseas Ships:
Division 13—International Agreements and Determination of Source of Certain Income:
Division 13A—Film and Video Tape Royalties:
Division 15—Insurance with Non-residents:
Division 17—Rebates
Subdivision A—Concessional Rebates:
Subdivision B—Miscellaneous
PART IV—RETURNS AND ASSESSMENTS
PART IVA—SCHEMES TO REDUCE INCOME TAX:
PART V—OBJECTIONS AND APPEALS
Division 2—Reviews and Appeals
PART VI—COLLECTION AND RECOVERY OF TAX
Division 4—Collection of Withholding Tax
PART VIII—MISCELLANEOUS
PART I
Assessable Income
Chapter 1 Jurisdictional Aspects and The Meaning of Income
Levy and Imposition of Tax
The Relevance of Residence in Australia and of Source in Australia
The Relevance of Residence in an Australian External Territory and of Source in an Australian External Territory
Income Subject to Withholding Tax and Some Other Special Forms of Tax
Meaning of Income in the Assessment Act
Structure
Background: an economist’s view of income
Some comparisons with the Assessment Act’s view of income
Capital gains
Bequests and gifts received
Lottery and casual gambling winnings
Retirement benefits and compensation for loss of office or employment, received in a lump sum
Compensation for injury to person or reputation received in a lump sum
Non-money accretions to spending power
Chapter 2 Income under the Assessment Act adopting ordinary usage
Proposition 1
Proposition 2
Proposition 3
Proposition 4
Proposition 5
Proposition 6
Members’ clubs
Co-operatives
Credit unions
Mutual insurance associations
Home unit corporations
Proposition 7
Proposition 8:
Product of services, employment or business
Periodical receipts
Compensation receipts
A gain derived from property
Proposition 9
Prizes
Gambling winnings
Proposition 10
Proposition 11
The principle of periodicity
A series of mere gifts
Covenanted payments; maintenance payments under an order for maintenance; scholarship payments; payments of an annuity under a will; pension payments from a superannuation fund; purchased annuity payments
Instalment receipts of an amount that would not be income if received in a single sum
Commutation of periodical receipts
Section 27H: Annuities
Section 262: Payments “really in the nature of income”
Section 23(1): Alimony or maintenance payments
Proposition 12
Dividends
The ordinary usage notion of a dividend that is income
The specific provisions of the Assessment Act making dividends income
The continuing scope for the ordinary usage concept of a dividend that is income
Interest
Instalment receipts of a debt or of the sale price of property
Payments where money has been borrowed
Periodical receipts
The proceeds of redemption or sale of a debt acquired at a discount
Rent
Section 26AB
Royalties
Receipts in respect of rights inherent in the ownership of land, or other rights in relation to land
Where possession of the land is retained by the taxpayer
Where possession and a right to take from the land is transferred to another
Where the land is wholly disposed of to another
Receipts in respect of commercial and industrial property rights
Where monopoly rights are retained and a non-exclusive licence is given
Where an exclusive licence in respect of monopoly rights is given to another
Where the monopoly rights are wholly disposed of
Receipts in respect of the supply of know-how
Proposition 13
The relationship of Proposition 13 to specific provisions of the Act
Reward for services and gain from an employment, or a business or profession of rendering services
Performance of services and supply of property
The distinction between a receipt which is a reward for services and a receipt for giving up a contract to perform services, or for accepting a restriction on one’s capacity to perform services
Receipt for giving up a contract to perform services
Distinguishing a receipt for giving up a contract and a receipt that is a reward for services
Surrender of rights as an act done in carrying on a business
A receipt on surrender of rights to perform services as compensation for rewards for services
Receipt for accepting a restriction on one’s capacity to perform services
Accepting a restriction on capacity to render services as an act done in carrying on a business
A receipt, on accepting a restriction, as compensation for rewards for services
The operation of Subdivision AA
Form and substance
Proposition 14
Continuing business
A number of transactions
Profit purpose
Business and investing
Revenue assets and structural assets
Isolated business venture
Gain or loss from an adventure in the nature of trade
Proposition 15
Compensation received on the realisation of an asset
Compensation received on the surrender of rights
Compensation under statute or insurance
Compensation received as damages
Receipts of voluntary payments
A receipt which is a return of an outgoing
Section 26(j)
Dissection or apportionment of a compensation receipt
Chapter 3 Income by Specific Statutory Provisions: Sections 25A and 26AAA
Section 25A and Section 26AAA
The Correlation between the Received Ordinary Usage Concept of an Isolated Business Venture and the Provisions of Section 25A
The Correlation between the Two Limbs of Section 25A(1)
Background: The Interpretation of Section 26(a)
The first limb of section 26(a)
The requirement that the property sold must be the property acquired
Purpose of profit-making by sale
Purpose in relation to income derived through an intermediary or an agent
Purposive acquisition
Sale by the taxpayer
The calculation of profit
The effect of interposition of a company
The element of “business deal”
Deduction of loss
The second limb of section 26(a)
The identity principle
Profit-making and business deal
Undertaking or scheme
Advantageous realisation is not a scheme
Acquisition of property and commencement of the scheme
The calculation of profit
The correlation of isolated business venture and section 26(a)
The Development of the Law by Section 25A
The transactions covered by subsections (2) to (12) of section 25A and subsections (2) to (5) of section 52
Sale of shares in a company, or an interest in a partnership, or an interest in a trust estate where the company, partnership or trust estate at the time of the sale holds property that was acquired for the purpose of profit-making by sale: Transaction (I)
Disposition in the prescribed manner of property acquired or deemed to have been acquired for the purpose of profit-making by sale: Transaction (II)
Disposition of an interest in property acquired for the purpose of profit-making by sale or a disposition of property in which an interest acquired for the purpose of profit-making by sale has merged: Transactions (III) and (IV)
A taxpayer actually acquires shares in a company for the purpose of profit-making by sale, or is deemed by the operation of any provisions of s. 25A to have acquired shares for that purpose, and the company makes a bonus issue or a rights issue to the taxpayer: Transaction (V)
Section 26AAA: Gains from the Sale of Property within 12 months of Purchase
Chapter 4 Income by other Specific Statutory Provisions
Derivation: Proposition 1
Section 6C(1): The derivation of royalties
Section 19: constructive receipt
Sections 25A, 26, 26AAA: profit arising, benefit given, item received
Section 26AAC: derivation of shares and rights to shares
Section 26BA: a deferral of derivation
Subdivision AA of Division 2 of Part III: an extended notion of constructive receipt
Section 44(1): the derivation of dividends
Division 5 of Part III: the derivation of partnership income
Division 6 of Part III: the derivation of trust income
Division 6A of Part III: deemed derivation of assigned income
Section 128D of Division 11A of Part III: derivation of income subject to withholding tax
Realisable Value: Proposition 2
Sections 20, 21: the statutory expression of the realisable value principle
Sections 26(e); 26AAAA; 26AAAB: the taxation of fringe benefits
Use of a motor vehicle
Free or subsidised housing
Services and goods provided at a discount
Low interest loans
Goods and services supplied by others and paid for directly by the employer
Moneys made available to employees for travel and entertainment expenses
Section 26(ea): fringe benefits of a member of the Defence Force
Section 26AAC: reward for services in the form of shares or rights to shares
Character of an item Judged in the Circumstances of its Derivation by the Taxpayer: Proposition 3
Section 26AAC(1)(b): income character of shares derived by a taxpayer determined by the character they would have in the hands of a relative of the taxpayer
Division 6 of Part III: The income character of receipts by a trust entity determined by reference to the circumstances of a hypothetical person
Division 9B of Part III: income character of receipts by a superannuation fund or an ineligible approved deposit fund
Gain as an Essential Quality of Income: Proposition 4
Section 27H: annuities, pensions and supplements to pensions
Divisions 6 and 9B of Part III: the requirement of gain in the circumstances of derivation by a trust entity
Sections 119 and 121: the exclusion of the requirement of gain by excluding the mutuality principle
Section 26(g): bounties and subsidies
Mere Gift does not have the Character of Income: Proposition 8
Sections 26(e) and 26(g): receipts in a service relationship, bounties and subsidies
A Capital Gain does not have the Character of Income: Proposition 10
Sections 25A and 26AAA: Profits from some sales and profit-making schemes, and from sales of property within 12 months of purchase
Sections 26AAB, 59, 60, 122K, 123C, 124AM, 124G, 124JB, 124P: receipts that recoup capital expenditures that are allowable deductions
Periodical Receipts: Proposition 11
Section 27H: annuities, pensions and supplement to pensions
Section 262: periodical payments which in the opinion of the Commissioner are really in the nature of income
Gains Derived from Property: Proposition 12
Section 26AB: Premiums that relate to the grant or assignment of a lease
Section 26(f): an amount received as or by way of royalty
Section 26(i): any amount received as or by way of bonus
Section 26(1): Payment for non-compliance with a covenant to repair
Subdivision D of Division 2 of Part III and sections 108, 109: dividends as defined and deemed dividends
Section 262: Commissioner’s power to identify an interest element in a series of receipts
Rewards for Services: Proposition 13
Sections 26(e); 26(ea); 26(eb); 26AAAA; 26AAAB: fringe benefits and other rewards for services
Section 26AAC: acquisition of shares under a scheme for the acquisition of shares by employees
Section 26(h): fee or commission for procuring a loan of money
Subdivision AA of Division 2 of Part III: payments made in consequence of termination of any employment; payments from superannuation funds; and annuity and pension receipts
Payments made in respect of a taxpayer in consequence of the termination of any employment of the taxpayer
A payment made from a superannuation fund
Exceptions applicable to paras (a) and (b) of the definition of “eligible termination payment”
Sections 26AC; 26AD; sums in lieu of annual leave and long service leave
Business Gains: Proposition 14
Section 26(g): bounties and subsidies
Sections 28–34, 51(2): the trading stock regime
Sections 36–37: gain on the disposal of trading stock otherwise than in carrying on the business, or on death
Sections 38–43: income of a non-resident that has an Australian source
Sections 129, 143: amounts deemed to be taxable income
Compensation Receipts: Proposition 15
Section 26(j): receipts by way of insurance or indemnity
Section 26(k): receipt in respect of a loss allowable under section 71
Section 63: recoupment of a loss that has been the subject of a write-off
Section 72: refund of an amount paid for rates or taxes
Section 82AAQ: refunds of contributions to a superannuation fund
Section 59(2)–(5): amounts received that recoup depreciation allowed
Sections 122K, 123C, 124AM, 124G, 124JB, 124P: amounts received that recoup the allowance of deductions in respect of capital expenditure
The Interpretation of Specific Provisions
PART II
ALLOWABLE DEDUCTIONS: THE REDUCTION OF ASSESSABLE INCOME TO TAXABLE INCOME
Chapter 5 The Framework of Section 51 of the Assessment Act
The Setting of Section 51
The Framework of Section 51
The distinction between outgoing and loss
Outlay and outgoing
The two limbs of section 51(1)
Matching of expenses and income
Temporal aspect of “in gaining” and “in carrying on”
Expenses relevant to the derivation of assessable income
Chapter 6 Relevant and Working Expenses
The Purpose of an Expense: Objective and Subjective Approaches
The Significance of the Fact that an Expense is Unusual
The Relevance of the Character of a Receipt by the Payee
The Characterisation of Fines, Penalties and Expenses of Defence
The Characterisation of Damages and Expenses of Defence
The Characterisation of Losses Arising from the Deprivation of Assets where the Assets are the Taxpayer’s own Property
The meaning of “losses”
Assets mislaid and assets destroyed
Assets appropriated by strangers
Acts of deprivation by employees or agents
The time when the loss is incurred
The Characterisation of Outgoings arising from the Deprivation of Assets held in trust by the Taxpayer
The Characterisation of Interest, Rent, Rates or Repairs that Relate to Assets of a Business, or to Property Whence Income is Derived
Interest
Rent
Rates and repairs
Interest, rent, rates and repairs where there is a charity letting of property
Sections 82KJ and 82KL, and Part IVA
The Characterisation of Payments of Royalties
Payments in respect of rights inherent in the ownership of land or other rights in relation to land
Payments for use, and payments for trading stock
Deduction when the taxpayer draws on a source of supply of trading stock
Payments in respect of commercial or industrial property
Payments in respect of the acquisition of know-how
The Characterisation of Premiums Paid on Policies of Insurance
Premiums for insurance of property against damage by fire or other misfortune
Premiums for insurance against loss of income arising from some misfortune, other than physical injury to the taxpayer’s person
Premiums for insurance against physical injury to the taxpayer’s person
Premiums for insurance on the life of the taxpayer or of another person, or for insurance against bodily injury suffered by another
Premiums for insurance that will indemnify the taxpayer against expenses
The Characterisation of Payments arising from the Giving of a Guarantee
The Characterisation of Payments to Trade, Business, Professional and Employee Associations
The Characterisation of Payments in Commutation of Future Payments or which Relieve from or Reduce Future Payments
The Characterisation of Expenses which relate to the Formation, Powers and Administration of an Entity
The characterisation of expenses of collecting and recording receipts which involve the derivation of income, and of payments of taxes
Expenses, being payments of taxes and expenses related thereto
The Distinction between Expenses of Deriving Income and the Application of Income Derived
The Characterisation of Losses in Relation to Receivables and Liabilities
The notion of “loss”
Losses in relation to receivables
Losses in relation to liabilities
Chapter 7 Relevant Expenses that are Capital: “Losses or Outgoings of a Capital Nature”
Characterisation of the Costs of Acquiring Assets
Structural assets and revenue assets; non-wasting assets and wasting assets
Costs of trading stock
The identification of “cost”
The costs of acquiring structural assets
The Characterisation of Expenses where no Structural Asset is Acquired
Expenses of effecting a change in structure
Expenses of defending as distinct from maintaining structure
Expenses that are Irrelevant: Losses or Outgoings of Capital
Chapter 8 Expenses that are Irrelevant: Private or Domestic Expenses
Food, Clothing, Health, Shelter and Child care Expenses
Expenses of food
Expenses of clothing
Health costs
Expenses of shelter
Child minding expenses
Home Study Expenses
Self-Education Expenses
Expenses of Travel
Expenses of Entertainment
Chapter 9 Apportionment of Expenses
Section 51(1)—“to the Extent to which”
Where the Issue is Relevance of an Expense
Where the Issue is the Working Character of an Admittedly Relevant Expense
The Bearing of Extended Form
The Arithmetic of Apportionment
Specific Statutory Provisions Allied to Apportionment
Chapter 10 Specific Provisions Confirming, Extending or Qualifying Deductibility Under Section 51(1)
Expenses Deductible Under More Than One Provision, or Deductible under one Provision and Subtractable in Computing a Profit that is Income or a Loss that is Deductible
Provisions Confirming and, Possibly, Extending the Operation of Section 51(1)
Section 53: repairs to property used for the purpose of producing assessable income
An expense of the reconstruction of an “entirety” is not a deductible repair
An “improvement” is not a repair
An “initial” repair expense is not deductible
The effect on the availability of a repair deduction that it is “early”, that it is “final” or that it is “abnormal”
Contemporaneity and relevance
The meaning of “use” in section 53
Section 64: expenditure by way of collecting assessable income
Section 64A: legal expenses
Section 72: rates and taxes
Provisions Allowing Deductions Beyond the Operation of Section 51(1), by Allowing Deductions of Expenses not yet Incurred under Section 51(1) or which are not Relevant to the Derivation of Income
Section 51A: deduction in respect of a living away from home allowance
Section 63: bad debts
A comparison of section 63 and section 51(1)
Section 63 and section 51(1) in relation to the treatment of the book debts of a business that is sold
“Write-off” and section 51(1) deduction
The operation of section 51(1) and section 63 where a debt or other property is taken in respect of a debt
The effect of sections 63A, 63B, 63C and 80F
Section 69: expenses for the preparation of an income tax return
Section 71: losses incurred by the taxpayer through misappropriation
Section 73: subscriptions to associations
Section 74: expenses of an election
Section 77: loss incurred in carrying on an exempt business
Section 78(1)(a) and section 78A: gifts to funds, authorities and institutions
Section 78(1)(c): pensions, gratuities or retiring allowances to persons who are or have been employees or dependants of employees
Section 82AAS and section 82AAT: contributions to a superannuation fund
Sections 82KM-82KS (Subdivision E of Division 3 of Part III): cost of thermal insulation of a dwelling used as the taxpayer’s sole or principal residence
Section 120: distributions by co-operative companies
Provisions Allowing Deductions beyond the Operation of Section 51(1), by Allowing Deductions of Expenses that are Relevant but not Working, or are not Contemporaneous
Section 53AA: payment which a lessee is liable to make because of his failure to perform a covenant to repair
Sections 53F and 53G: costs of connecting plant for use in connection with decimal currency or the metric system of measurement
Sections 54–62: deductions in respect of depreciation
Property to which the depreciation provisions apply
The requirement that the unit of property must be owned by the taxpayer
The method of allowance of deductions for depreciation
The consequences of disposal
Property partly used for the purpose of producing assessable income
Division 10C and Division 10D of Part III, sections 124ZA–124ZK: deductions for capital expenditure on traveller accommodation, and deductions for capital expenditure on certain income producing buildings
Section 67: expenses of borrowing
Section 67A: expenditure in connection with the discharge of a mortgage
Section 68: expenses incurred in relation to the taking of a lease or the assignment or surrender of a lease
Section 68A: expenditure in obtaining, or seeking to obtain, for the purpose of producing assessable income, the grant of a patent, the registration of a design or the registration of a copyright
Section 70A: expenditure on the connection of mains electricity facilities to land
Division 10B and Division 10BA of Part III, ss 124K-124ZAP: amortisation deductions in respect of items of industrial or commercial property, and special deductions in respect of Australian films
The availability of the amortisation provisions
The method of allowance of deductions
The consequences of disposal or cessation of a unit of property
Provisions Displacing the Operation of Section 51(1) in Relation to some Classes of Expenses
Section 52: loss incurred by the taxpayer in a year of income upon the sale of any property, or from the carrying on or carrying out of any undertaking or scheme
Subdivision AA of Division 3 of Part III—sections 82AAA-82AAR: amounts set apart or paid as or to a fund for the purpose of making provision for superannuation benefits for, or for dependants of, an employee or employees
Provisions Denying Deductions otherwise Allowable under Section 51(1)
Section 31C: amounts paid for articles of trading stock
Subdivision B of Division 2A of Part III, sections 50A-50N: denial of deductions incurred during part of a year exceeding income derived in that part of a year
Section 51AB: expenses incurred to secure or maintain membership of a “club”, or facilities provided by a club, and expenses incurred in connection with a “leisure facility”
Section 52A: expenditure incurred by a taxpayer in the purchase or acquisition of choses in action as trading stock, or in the purchase or acquisition of property purchased or acquired in the carrying on or carrying out of a profit-making undertaking or scheme
Section 65(1): payment made or liability incurred by a taxpayer to an associated person
Payment by an individual who is not a trustee
Payment by a company that is not a trustee
Payment by a trustee acting as trustee
Payment by a partnership
Section 65(2): expenditure incurred and payments becoming due, by the taxpayer in the year of income in or for the maintenance of his wife or any member of his family under the age of 16 years
Section 82A: expenses of self-education in a year of income not exceeding $250
Subdivision D of Division 3 of Part III (sections 82KH–82KL): losses and outgoings incurred under certain tax avoidance schemes
Division 3A of Part III (sections 82L-82T): convertible notes
Sections 108 and 109: payments to shareholders
Division 13 (sections 136AA-136AG)—international agreements
Part IVA: schemes to reduce income tax
Provisions Allowing Deductions of Notional Expenses
Sections 80-80F: losses of previous years
The carry forward of losses not incurred in primary production or in the producing of a film
Losses incurred in primary production or in the producing of a film
The consequences of bankruptcy
Losses resulting from schemes of tax avoidance
Restrictions on loss carry forward by companies
Subdivision B of Division 3 of Part III (sections 82AA-82AQ): investment allowance
Section 102C: deduction for a deemed payment where income that has been transferred to another is treated for tax purposes as if the transfer had not been made
Provisions Allowing Deduction of Expenses of Particular Industries
PART III
TAX ACCOUNTING
Chapter 11 Accounting for Receipts and Outgoings
Introduction
Tax Accounting and Financial Accounting
The Basic Distinction: Accounting for Receipts and Outgoings and Accounting for Specific Profit or Loss
The Distinction between Accruals and Cash Tax Accounting
The Appropriateness of each basis of Accounting
The Meaning of Derivation of a Receipt when an Accruals basis is Appropriate
Derivation by an accruals basis taxpayer where the receipt is an item other than cash
The operation of section 19
The operation of section 101A
The Meaning of Incurring of an Outgoing on an Accruals Basis of Tax Accounting
Tax Accounting for Receipts “in Advance” and for Outgoings “in Advance” Under Accruals Accounting
Accounting for Receipts on a Cash basis
Derivation on a cash basis where a right to receive cash is applied so that the taxpayer becomes entitled to a benefit other than money, or where the item of income is something other than money
The operation of section 101A
Other specific provisions
Accounting for Outgoings on a Cash Basis
The incurring of an outgoing where the item is something other than money
The operation of section 101A
Specific provisions allowing the deduction of outgoings
Accounting on a Cash Basis for Receipts and Outgoings “in Advance”
The Consequences of a Change in the Basis of Accounting
The Identification of a Receipt or Outgoing
Receipts Abandoned or Refunded and Outgoings Relieved from or Repaid
The Treatment of Interest, Premiums and Discounts on Loans
Accounting for interest
Accounting for premiums and discounts
In relation to the lender
In relation to an assignee from the lender
In relation to the borrower
The Treatment of Discounts on the Negotiation of Bills of Exchange
Accounting for Royalties and Income Derived from Property
Where general property rights remain with the taxpayer
Property physically depleted by use
Property not physically depleted by use
Where general property rights are disposed of
Accounting for royalties and income derived from property on an accruals basis
Accounting for annuities and periodical receipts
Correlation of Accounting for Receipt and Accounting for a Deduction by the Payer
Chapter 12 Accounting for Specific Profit or Loss
Introduction
Specific profit accounting within receipts and outgoings accounting of a continuing business
Accounting for a loss
Accounting on a disposition not in the ordinary course of business
Specific Profit Accounting in its Application to an Isolated Business Venture
Specific Profit Accounting in its Application to Section 25A(1) and Section 26AAA Situations
Receipts and Outgoings Accounting in its Application to an Isolated Business Venture
Profit or Loss “Realised”, and a Profit or Loss “Arising” or “Emerging”
The Determination of Profit or Loss on each of Successive Transactions where the Proceeds of an Earlier Transaction is an Item other than Cash
The Identification of Cost where Property is Held before a Process of Income Derivation is Entered on, or Property is Acquired Wholly or Partly by way of Gift, or where an Excessive payment is made for Property
Profit or Loss on a Disposition Wholly or Partly by way of Gift
Disposition in Closing down a Business
The Consequences of Death of the Taxpayer
The Consequences of Cessation of a Business, or the Taking of Assets out of a Business, or the Transfer of an Asset from one Business to Another
The Determination of Profit or Loss on Successive Transactions in Shares and Rights to Shares
Where there is no rights or bonus issue in respect of shares held by the taxpayer
Where there is a rights or bonus issue in relation to shares held by the taxpayer
The operation of section 25A
The operation of s. 26AAA
The operation of ordinary usage principles in relation to business income
Where section 26AAC applies
Accounting for Debts
Accounting for profit or loss in regard to a debt receivable
Accounting for profit or loss in relation to a debt payable
Accounting where an item other than cash is taken in satisfaction or given in discharge
Accounting for Exchange Gains or Losses
Accounting for Premiums on the Repayment of Loans, and Discounts allowed on the Undertaking of Liabilities to Repay Loans
The Treatment of Discounts on the Negotiation of Bills of Exchange
Accounting where the Circumstances Reflect Multiple Bases of Income Character, Embracing Several Derivations of Income
Disposition of goods or the provision of services in exchange for an annuity
Disposition of goods or the provision of services in exchange for a right to future receipts
Chapter 13 Assignment of Income
Introduction
The Assignment of an Item Presently Receivable by a Taxpayer who is on a Cash Basis
The Assignment of an Item Presently Receivable by a Taxpayer who is on an Accruals Basis
The Assignment of Rights to, or an Expectancy of, Future Receipts by a Taxpayer who is on a Cash Basis
The Assignment of Rights to, or an Expectancy of, Future Receipts by a Taxpayer who is on an Accruals Basis
The Assignment of Active Income
The Assignment of Dividend Income
The Diversion of Income by a Stipulation for a Payment to be made to Another
The tax consequences of a stipulation by A that B will make a payment to C
The tax consequences of a stipulation by A as trustee for C that B will make a payment to C
The possible tax consequence that there is no derivation of income by any person
The Tax Consequences of a Purported Assignment of “Net” Receipts
The Effect of an Assignment of Underlying Property
In relation to a share in a partnership
The Operation of Division 6A of Part III—Alienation of Income for Short Periods
Chapter 14 Accounting for Trading Stock
Introduction
The Nature of Trading Stock
The Bringing in of Value at Year End
The Determination of Cost
Direct costing and absorption costing
The identification of the cost of an item
Cost where an item was already owned before it became trading stock
Cost where an item comes into existence on severance
Cost where more than a normal supply of stock is acquired
Cost in a two stage acquisition
Cost where there is an element of gift by the person from whom trading stock is required
Cost where the amount paid for trading stock is excessive
Accounting on the Realisation of Trading Stock
Accounting for Trading Stock on Death
Chapter 15 Tax Accounting in Conditions of Inflation
Introduction
Australian Discussion of Inflation Tax Accounting
The Report of the Asprey Committee
The Report of the Mathews Committee
The Australian Experience in Inflation Tax Accounting
The Feasibility of a Coherent Tax Accounting for Inflation
Chapter 16 The Reconstruction of Tax Accounts
Reconstruction under Section 65
Reconstruction under Division 13 of Part III
Reconstruction under Division 6A of Part III
The Meaning of Tax Avoidance
Reconstruction under Part IVA
Background: section 260
The operation of Part IVA
The place of section 177E in Part IVA
The Extent of Achievement of the Policies of the Income Tax
Index

TABLE OF CONTENTS