Taxation by Analogy
Graeme S. Cooper
University of Sydney - Faculty of Law
August 27, 2013
Australian Tax Review, Vol. 42, No. 4, pp. 255-268, 2013
Sydney Law School Research Paper No. 13/66
This paper argues that all anti-abuse rules in tax law require both a destruction and reconstruction step. The paper considers the claim, which prompted the 2013 changes, that Australia’s reconstruction rule was defective and then examines some of the theoretical options that were available for reforming the reconstruction step. It discusses some issues arising from the way the preferred rules are now built on an inconsistent foundation and ponders some of the curious outcomes that may arise when the new provisions have to be applied. While the mechanisms chosen for Australia may seem odd and contradictory, the experience elsewhere in the common law world does not offer a more cogent approach.
Number of Pages in PDF File: 21
Keywords: Taxation, tax avoidance, statutory general anti-avoidance rules, reconstruction powers
JEL Classification: H20, H25, H26, K34, K42
Date posted: August 29, 2013 ; Last revised: September 29, 2014
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