Figures and tables

FIGURES AND TABLES

FIGURES

FIGURE 1: 'Benchmark' income tax base

FIGURE 2: Investors' returns - benchmark tax base

FIGURE 3: Investment value reflecting future cash flows

FIGURE 4: Annual change in asset value

FIGURE 5: Zero-coupon discounted bond

FIGURE 6: Income tax treatment of item of expenditure

FIGURE 7: Retained profits in company

FIGURE 8: Off-market buyback (or liquidation)

FIGURE 9: On-market buyback

FIGURE 10: Returns across different assets

FIGURE 11: Geared investment with concessional treatment, full loss offset and price adjustments

FIGURE 12: Geared investment with concessional treatment, quarantining and price adjustments

FIGURE 13: Geared investment with benchmark treatment and price adjustments

FIGURE 14: Domestic benchmark base for neutral international investment decisions

FIGURE 15: Some foreign tax crediting issues

FIGURE 16: Foreign investment by home company

FIGURE 17: Offshore company, OffCo, acquired by IntCo Year 2 and resold Year 5

FIGURE 18: IntCo with flow-through of foreign tax credits using franking account

FIGURE 19: IntCo's shareholders with flow-through of foreign tax credits using franking account

FIGURE 20: IntCo's shareholders with limited flow-through of foreign tax credits using franking account

FIGURE 21: IntCo's shareholders with flow-through of foreign tax credis (integration of taxable income)

FIGURE 22: Bank account paying 10% pa with interest withdrawn each year

FIGURE 23: Bank account paying 10% pa with interest reinvested each year

FIGURE 24: Simple interest loan at 10%

FIGURE 25: Bank account with variable annual interest rates (withdrawal each year)

FIGURE 26: Ordinary annuity certain

FIGURE 27: Discounted $1000 zer-coupon bond

FIGURE 28: 5% coupon bond (no discount or premium)

FIGURE 29: Discounted 5% coupon bond (standard change in value method)

FIGURE 30: Discounted 5% coupon bond (value change from discount)

FIGURE 31: Indexed bond at face value

FIGURE 32: Indexed bond at premium (standard change in value method)

FIGURE 33: Indexed bond at premium (value method from premium)

FIGURE 34: Depreciating asset before being leased

FIGURE 35: Lessor's asset comprising lease rental stream

FIGURE 36: Lease from lessor's perspective

FIGURE 37: Financial asset subject to assignment

FIGURE 38: Assignment liability from assignor's perspective

FIGURE 39: Offshore discounted zero coupon bond

FIGURE 40: Offshore discounted zero coupon bond with spot exchange rate change

FIGURE 41: Foreign O$1000 coupon bond with 10% coupons

FIGURE 42: Foreign O$1000 coupon bond with 10% coupons and spot exchange rate change

FIGURE 43: Foreign bank account with no withdrawals

FIGURE 44: Comprehensive real income tax base

FIGURE 45: Investor's returns - real income tax base

FIGURE 46: Depreciable assets - two methods for estimating write-off rates

FIGURE 47: Non-inflationary and post-inflation declining asset value

FIGURE 48: Tax deductions with accelerated depreciation

FIGURE 49: Cost to revenue of accelerated depreciation

FIGURE 50: Stylised infrastructure project

FIGURE 51: Stylised infrastructure project with price adjustments

TABLES

TABLE 1: Entity income tax systems imposing a single layer of tax

TABLE 2: Effects on investor returns of 1/2 CGT arrangements

TABLE 3: Tax revenue balance with leasing versus loan payments

TABLE 4: Asset attracting declining balance depreciation with no inflation

TABLE 5: Asset attracting declining balance depreciation under 8% inflation

TABLE 6: Asset attracting nominal economic depreciation under 8% inflation

TABLE 7: Asset attracting real economic depreciation for income tax purposes

TABLE 8: Multiplicative factor equalising tax value of declining balance and prime cost depreciation after a proportion of effective life

TABLE 9: Multiplicative factor equalising PV of declining and prime cost depreciation

TABLE 10: Aggregate depreciation deductions with constant expenditure

TABLE 11: Cost to tax revenue of accelerated depreciation with constant expenditure

TABLE 12: Cost to tax revenue of accelerated depreciation with increasing expenditure

TABLE 13: Depreciable asset marginal before and after benchmark tax treatment

TABLE 14: Inframarginal depreciable asset with up-front value versus price ignored

TABLE 15: Inframarginal depreciable asset with benchmark tax base applying

TABLE 16: Inframarginal depreciable asset with declining balance depreciation applying