Taxing Investment Income - Contents

Prefaceviii
   
References
xiv
Acknowledgements
xv
Chapter 1Introduction1
   
Chapter 2Illustrating how investing worldwide need not be affected by income taxation7
   
Jim considers investing directly into local widget production
8
Jim considers investing in local widget production indirectly via a local company
13
Jim, Francis and Raymond consider investing in widget production involving international flows
17
Income taxation design has been moving towards the neutral ideal
23
   
Chapter 3Explaining concepts underpinning neutral taxation of investment income25
   
Searching for neutral income tax design
26
Neutral income tax design applicable to all Jim’s investments
38
… if actual income is measured in nominal terms
39
… if income is measured in real terms
41
… and once investment risk is recognised
43
   
Chapter 4Putting the neutral income tax base into practice49
   
Principled specification of taxable income
50
Design template accommodates tax values of all types of assets and liabilities
53
Design template has a range of practical advantages
54
Design template matches changes in tax value and actual value over period assets are held
55
Depreciating tangible assets
56
Appreciating assets and capital gains taxation
68
Delayed-cashflow assets
84
Rental property and negative gearing
94
Financial assets and liabilities (including leases and rights)
106
Leasing
128
Capital repayment assignment
141
Foreign bonds and bank accounts
145
Trading stock
154
What investments does Jim choose?
158
   
Chapter 5Integrating the local income of entities into investors’ tax assessments160
   
Current varied entity income tax design
163
Widget production via a company
167
Widget production via a fixed trust
195
Widget production via a discretionary trust
207
Jim’s feelings about the taxation of entities
209
Consistent entity income tax design
210
Inquiry’s design to integrate entity taxable income with investors’ personal tax assessments
212
Practicalities of integrating taxable income of entities
231
Refunds to non-residents of domestic tax withheld
232
Measure of entity income to be taxed to entity investors
233
Entity distribution notices, chains of entities and assessment lags
234
Potential loss in tax revenue
236
Non-resident entity investors or beneficiaries
238
Information in entity distribution statements
239
Tax policy advisors’ overview
240
Case study: off-market and on-market share buy-backs
241
Off-market share buy-backs: tax treatment
242
On-market share buy-backs: tax treatment
250
Buy-back of entity interests under integration of entity income
256
   
Chapter 6Integrating foreign income into investors’ tax assessments258
   
Taxing international investment flows to achieve neutral effect on investment decisions
258
Practical foreign tax crediting issues
261
Flow-through of foreign tax credits: offshore investment case study
264
Simplicity policy option
270
Complexity policy option
277
Compromise policy option
281
Integrating taxable income of entities in the international scene
285
Approaching ‘bliss point’ of investment income taxation
289
   
Annotated contents297
   




© Copyright Wayne Mayo 2012