Predicting the Past – The Problem of Finding a Counterfactual in Part IVA

Australian Tax Review, Vol. 40, No. 3, pp. 185-200, 2011

Sydney Law School Research Paper No. 11/49

23 Pages Posted: 17 Aug 2011 Last revised: 31 Aug 2011

Graeme S. Cooper

The University of Sydney Law School

Date Written: August 16, 2011

Abstract

Australia’s general anti-avoidance rule permits the revenue authority to strike down transactions which occurred and the tax consequences they generated. This is the easy step. The harder task is the next step because the rule seems to require speculation about what might have happened instead, although there is currently some dispute about just how far this speculation needs to venture and how accurately it needs to be done. Recent cases show this to be the new battleground of tax avoidance disputes – the problems that inevitably arise from having to speculate about a past that did not happen, but might have.

Keywords: income tax, tax avoidance

JEL Classification: K10, K30, K34, H24, H25, H26

Suggested Citation

Cooper, Graeme S., Predicting the Past – The Problem of Finding a Counterfactual in Part IVA (August 16, 2011). Australian Tax Review, Vol. 40, No. 3, pp. 185-200, 2011; Sydney Law School Research Paper No. 11/49. Available at SSRN: https://ssrn.com/abstract=1910990

Graeme S. Cooper (Contact Author)

The University of Sydney Law School ( email )

New Law Building, F10
The University of Sydney
Sydney, NSW 2006
Australia

Paper statistics

Downloads
225
Rank
108,107
Abstract Views
817