refinancing arrangements which are variations on "Myer" schemes,
so named after an Australian case which has been given wide
publicity in professional circles. Briefly, these arrangements
seek to convert an income flow, such as interest on a loan which
is assessable to profits tax, into a non-taxable capital receipt by assigning the income flow to another person without assigning
the underlying asset. The arrangements may also involve efforts
to give income an off-shore source.
138.
It is possible that the general anti-avoidance
provisions introduced last year may be effective in negating the
tax benefit sought from these arrangements. Certainly, the
Commissioner of Inland Revenue will challenge cases where he
considers that the purpose of any arrangement falls within the
terms of the general anti-avoidance provisions. However,
because the amount of revenue capable of being put at risk is so
large and since it has always been the Government's policy
implement specific legislation to counter specific tax-avoidance
schemes, I propose, subject to the advice of the Executive Council, to introduce legislation aimed specifically
asset refinancing arrangements. I further propose
legislation should apply to arrangements entered into after
today.
to
at at these
that such
IMPLEMENTATION
139.
My proposals for dutiable commodities, visa and travel documents and vehicle and driving licence fees were the subject
of Public Revenue Protection Orders signed by Your Excellency this morning. The increase in the business registration fee
will, subject to the approval of this Council, take effect on
1 April 1987. Other increases in fees and charges will be
brought forward during the year as the relevant reviews are
completed. During the current session bills will be introduced this Council to give effect to my proposals on estate duty
and tax concessions.
into
44
/SUMMING