A tax law in Australia is forcing potential investors to reconsider moving their business to the country.
A judge is hoping to clear up a law concerning Australian taxation, which he believes is hindering the ability for outside companies to invest in the country.
Justice Richard Edmonds said that a distinction needs to be made between capital gains and income, as the current Australian Tax Office rulings requires private equity firms outside of treaty protection to pay on any revenue.
"It seems to me to be a totally unsatisfactory state of affairs that liability to tax should depend upon such an antiquated judicial concept as the distinction between capital and income," he told the Sydney Morning Herald.
He added that the situation is currently undermining efforts to encourage investment in Australia and will see more firms take up residence in other countries in order to avoid the tax.
An Organisation for Economic Co-operation and Development report recently said that further efforts are needed to harmonise regulations, strengthen competition and streamline infrastructure regulation in Australia.
Posted by Steve Douglas
A judge is hoping to clear up a law concerning Australian taxation, which he believes is hindering the ability for outside companies to invest in the country.
Justice Richard Edmonds said that a distinction needs to be made between capital gains and income, as the current Australian Tax Office rulings requires private equity firms outside of treaty protection to pay on any revenue.
"It seems to me to be a totally unsatisfactory state of affairs that liability to tax should depend upon such an antiquated judicial concept as the distinction between capital and income," he told the Sydney Morning Herald.
He added that the situation is currently undermining efforts to encourage investment in Australia and will see more firms take up residence in other countries in order to avoid the tax.
An Organisation for Economic Co-operation and Development report recently said that further efforts are needed to harmonise regulations, strengthen competition and streamline infrastructure regulation in Australia.
Posted by Steve Douglas
