TBC3250

Financial aspects of business taxation

Associate Professor Les Nethercott and Mr Grant Richardson

6 points
* Two 1-hour lectures and one 1-hour tutorial per week
* Second semester
* Clayton
* Prerequisites: TBC3150 and AFC2140

Objectives On completion of this subject, students should be able to integrate tax issues into a diverse range of business decisions. in particular, students should understand and be able to apply their knowledge and skills in the taxation of foreign source income and foreign investment funds; the use of tax-effective business structures for international operations; the subjects of transfer pricing and thin capitalisation; the importance of tax in the valuation of companies and projects; the effect of tax on dividend and capital structure decisions; the tax implications arising from business reorganisation; and the impact of tax on financial instruments.

Synopsis This subject covers the design of tax-effective business structures for international operations; the subjects of transfer pricing and thin capitalisation; the importance of tax in the valuation of companies, including incorporating tax in cash flow estimates and the cost of capital; the tax implications arising from the restructuring of business; the impact of taxation on the design, trading and valuation of financial instruments; and advanced capital gains tax issues relation to business structures.

Assessment Written assignment and case studies: 20%
* Examination (3 hours): 80%

Prescribed texts

Cates S Tax aspects of corporate restructuring Law Book, 1996
Peirson C G and others Business finance 6th edn, McGraw-Hill, 1995
Scholtz W Australian corporate taxation Law Book, 1996
Woellner R and others Australian taxation law 7th edn, CCH 1997