A comparison of the Australian and Japanese corporations tax reorganization rules
Dabner, J.H., and Murai, T. (2003) A comparison of the Australian and Japanese corporations tax reorganization rules. Kansai University Review of Law and Politics, 24. pp. 15-26.
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The Australian and Japanese Governments have both come to appreciate that corporate reorganisations are necessary for an efficient economy and are therefore to be encouraged. Thus, tax relief has been provided in both countries; though only very recently in Japan.
Intra-group transactions under the guise of a reorganisation can also present ample opportunity for tax avoidance. The Australian response has been to include detailed anti-avoidance rules, whereas the Japanese response has been to enact a general anti-avoidance rule applicable to reorganisations.
Both approaches have their limitations. In particular, the Japanese response has the potential to generate uncertainty that may detract from the policy of encouraging corporate reorganisations. Guidance as to the application of the anti-avoidance rule is therefore required. Reference to the Australian experience may assist in identifying likely avoidance opportunities and an appropriate response. In particular, non-taxable value transfers and the artificial generation of tax losses must be provided for.
|Item Type:||Article (Refereed Research - C1)|
|Keywords:||Japanese taxation; taxation|
|Date Deposited:||29 Aug 2012 01:02|
|FoR Codes:||18 LAW AND LEGAL STUDIES > 1899 Other Law and Legal Studies > 189999 Law and Legal Studies not elsewhere classified @ 100%|
|SEO Codes:||97 EXPANDING KNOWLEDGE @ 100%|