The objective of this unit is to examine the policy and practical issues that arise in Australia for the taxation of income derived through partnerships and trusts which are generally transparent for tax purposes. The focus of the course is twofold. First, it looks at the use of these vehicles by small business and in the case of trusts by high wealth individuals. Secondly it looks at the use of these (and other effectively tax-transparent) vehicles for collective investment. Given the recent focus by the government on rewriting the existing rules and developing new vehicles for collective investment, and the failure over many years to rewrite the rules for small business tax-transparent entities, the main emphasis of the unit will be on the recent and on-going developments in relation to collective investment. The goals of the unit are to develop a detailed understanding of the policies, technical rules and practical problems involved in the taxation of partnerships and trusts. Upon successful completion of this unit, students should have an advanced understanding of the technical rules underlying the taxation of partnerships and trusts in a variety of forms and in a variety of commercial situations. The unit covers: problems of taxing entities (partnerships and trusts contrasted with companies); classification of entities for tax purposes; taxation of partners and trust beneficiaries in a small business/high wealth context; taxation of collective investment vehicles mainly in the form of trusts and partnerships, including AMITs and MITs, public trading trusts, LPs, venture capital, foreign hybrids, listed investment companies and investment manager regime.
Classes: 1x2-hr lecture/week
in-class assessment (30%) and 2hr exam (70%)
Academic Profile https://sydney.edu.au/law/about/our-people.html. The unit is also available on a Continuing Professional Development basis https://sydney.edu.au/law/cpd/
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.