International taxation
Mr John Glover
One 2-hour lecture per week * Second semester * City
Objectives Upon completion of this subject a student should (1) be familiar with the tax consequences of international trading and with the options which should be advised to a business to a business so engaged; (2) understand the provisions of the Income Tax Assessment Act 1936 (Cth) relevant to the taxation of resident entities on income derived from all sources; (3) understand the provisions of the Income Tax Assessment Act 1936 (Cth) relevant to the taxation of non-residents on income derived from an Australian source; (4) understand tax aspects of international financing and leasing operations, the use of tax havens and various international tax planning techniques; (5) be able to identify the principles, laws and precedents relevant to the choice of tax-efficient, international trading structures; and (6) have developed skills of oral presentation of legal policy, rules and argument, including considerations of fairness, symmetry and efficiency.
Synopsis Residence, source and other concepts used in international taxation are defined, together with the jurisdictional competence of the Australian taxing authority. Then relevant provisions of the Income Tax Assessment Act 1936 (Cth) are outlined: exemption, accruals and tax credit regimes for foreign source income; assessment and withholding tax regimes for the income of non-residents. Development of international operations then becomes the subject's focus. The perspective chosen is chiefly that of advising a foreign company trading in Australia. Attention is given to the choice of appropriate investment vehicle and holding company structures, places of sales, manufacturing or the supply of services, transfer pricing, capitalisation, interest payments and other financing options. Use of tax havens is considered, together with specific tax planning techniques including dual resident companies, dividend access planning, deduction shopping, corporate migration, non-resident companies and captive insurance companies. Susceptibility of these and other steps to avoidance under Part IVA of the Act is examined.
Assessment Research paper (5000 words): 50% * Class presentation/participation: 10% * Final examination (2.5 hours): 40%
Texts
Printed materials will be issued to students
| Published by Monash University, Clayton, Victoria
3168 Copyright © Monash University 1996 - All Rights Reserved - Caution Authorised by the Academic Registrar December 1996 |