This advanced unit consists of a detailed examination of the tax rules applied to companies and shareholders in a domestic setting in Australia. The goals of the unit are to develop an understanding of the policies, detailed rules and current practical problems involved in the taxation of companies and shareholders and to explore why different solutions are used for these entities when compared to partnerships and trusts. Upon successful completion of this unit, a student should have an advanced understanding of the policies underlying Australia's corporate tax system, as well as a detailed knowledge of the technical detail involved in the rules for the taxation of companies and their shareholders in Australia. Topics to be covered include: the policy and problems of taxing companies and shareholders; taxation of company distributions and dealings with interests in companies, including liquidations and share repurchases; imputation, including dividends passing through partnerships and trusts and intercorporate dividends; debt equity classification; shareholder rules; dividend and capital streaming and stripping; and value shifting.
Session S1CIAP: Apr 4-6 and 9, 10 (9-3.30)
in-class test (30%) and 2hr exam or 7000wd essay (70%)
It is assumed that students undertaking this unit have an understanding of Australian income taxation law commensurate with that which would be obtained from completing undergraduate study in Australian taxation law or five years working with Australian tax law in a law or accounting practice in an industry role or in the Australian Taxation Office. For students who do not have such knowledge or work experience they first should undertake LAWS6825 Introduction to Australian Business Tax before enrolling in this unit. The completion of other foundation units such as LAWS6840 Taxation of Business and Investment Income A and LAWS6841 Taxation of Business and Investment Income B will provide students, without such knowledge or work experience, with additional knowledge and skills that will assists in successfully completing this unit.