Footnotes

Chapter 2 - The bill

[1]        The Hon. Peter Dutton MP, Minister for Revenue and Assistant Treasurer, House of Representatives Hansard, 10 May 2007, p. 1.

[2]        The Hon. Peter Dutton MP, Minister for Revenue and Assistant Treasurer, House of Representatives Hansard, 10 May 2007, p. 2.

[3]        A franking account is an account into which taxation debits and credits are passed on to shareholders who have received franked (tax paid) dividends on their shareholdings.

[4]        EM, p. 38.

[5]        EM, p. 12.

[6]        EM, p. 38.

[7]        EM, p. 39.

[8]        EM, p. 12 and pp 21–29.

[9]        EM, p. 13.

[10]      EM, p. 30.

[11]      EM, p. 16.

[12]      EM, p. 17.

[13]      EM, pp. 17–18.

[14]      EM, p. 19.

[15]      EM, p. 20.

[16]      EM, p. 20.

[17]      EM, p. 32.

[18]      A testamentary trust is a trust which is created through the grantor's will and does not become operational until the grantor's death.

[19]      EM, pp 58 – 65.

[20]      EM, p. 6.

[21]      The Hon. Peter Dutton MP, Minister for Revenue and Assistant Treasurer, House of Representatives Hansard, 10 May 2007, p. 1.

[22]      Explanatory Memorandum (EM), p. 85.  The taxation of interest paid or credited from Australia to non-residents, and residents operating through offshore permanent establishments, is dealt with in the IWT provisions contained in Division 11A of the Income Tax Assessment Act 1936.  It provisions work in conjunction with the Income Tax (Dividends, Interest and Royalties) Withholding Tax Act 1974.  The obligation for collecting the IWT is placed on the person making the payment (ie, the borrower). The provisions define ‘interest’ and stipulate when an amount of interest is subject to withholding tax.

[23]      EM, pp 81–82.

[24]      Bills Digest, p. 15.

[25]      Senate Standing Committee on Economics, Tax Laws Amendment (2006 Measures No. 7) Bill 2006, February 2007.

[26]      Bills Digest, p. 15.

[27]      Bills Digest, p. 15.

[28]      EM, p. 83 & p. 89.

[29]      EM, p. 83.

[30]      EM, p. 96.

[31]      The Hon Peter Dutton MP and Senator the Hon. Eric Abetz, 'Review of the Taxation of Plantation Forestry', Joint Media Release, 21 December 2006. The Hon. Peter Dutton MP, Minister for Revenue and Assistant Treasurer, House of Representatives Hansard, 10 May 2007, p. 3.

[32]      Plantations 2020, http://www.plantations2020.com.au/vision/ (accessed 24 May 2007).

[33]      A secondary investor is an investor who acquires an interest in a forestry scheme through secondary market trading (ie: trading in intangible assets—such as securities—after their initial issue and purchase).

[34]      EM, p. 100.

[35]      EM, p. 102.

[36]      EM, p. 103.

[37]      EM, pp 127–128.

[38]      EM, p. 128.

[39]      Les Nielson and Peter Hicks, Tax Laws Amendment (2007 Measures No. 3) Bill 2007, Bills Digest No. 159, 2006–07, p. 27.

[40]      Explanatory Memorandum (EM), p. 147.

[41]      EM, p. 147.

[42]      Bills Digest, p. 29.

[43]      As discussed in Briefing Paper 10.

[44]      EM, p. 148.

[45]      EM, pp. 169­­­–170.

[46]      EM, pp. 169–170.

[47]      EM, p. 172.

[48]      EM, p. 184.

[49]      EM, p. 193.

[50]      EM, p. 170.

[51]      EM, p. 170.

Chapter 3 - Issues in relation to Schedules 1, 4, 8 and 10

[1]        Taxation Institute of Australia, 'A victory for commonsense on shareholder loans', Media Release, 6 December 2006, http://www.taxinstitute.com.au/go/media-releases/a-victory-for-commonsense-on-shareholder-loans (accessed 31 May 2007).

[2]        Committee Hansard, 1 June 2007, p. 27.

[3]        Submission 7, p. 1.

[4]        For a more detailed explanation of this rule, see Les Nielson and Peter Hicks, Tax Laws Amendment (2007 Measures No. 3) Bill 2007, Bills Digest No. 159, 2006–07, pp. 21–22.

[5]        Submission 7, p. 6.

[6]        Submission 7, p. 11.

[7]        Submission 7, p. 13.

[8]        Mr Blair Comley, Committee Hansard, 1 June 2007, p. 28.

[9]        Investment and Financial Services Association (IFSA), Submission 6, pp 5-6.  For other similar comments, please see:  the 16 May 2007 letter addressed to the Treasurer, Mr Peter Costello MP, by the Business Coalition for Tax Reform; Real Estate Institute of Australia, Submission 2; The GPT Group, Submission 3; Barclay's Global Investors, Submission 4; and Property Council of Australia, Submission 5.

[10]      Mr Richard Gilbert, Committee Hansard, 1 June 2007, p. 5.

[11]      Mr Robin Speed, Committee Hansard, 1 June 2007, p. 7.

[12]      Mr Trevor Cooke, Committee Hansard, 1 June 2007, p. 9.

[13]      Mr Trevor Cooke, Committee Hansard, 1 June 2007, p. 14.

[14]      Mr Robin Speed, Committee Hansard, 1 June 2007, p. 4.

[15]      Mr Robin Speed, Committee Hansard, 1 June 2007, p. 4.

[16]      Mr Robin Speed, Committee Hansard, 1 June 2007, p. 11.

[17]      Mr Trevor Cooke, Committee Hansard, 1 June 2007, p. 11.

[18]      Mr Robin Speed, Committee Hansard, 1 June 2007, p. 11.

[19]      Mr Robin Speed, Committee Hansard, 1 June 2007, p. 5.

[20]      Mr Richard Gilbert, Committee Hansard, 1 June 2007, p. 1.

[21]      Mr Robin Speed, Committee Hansard, 1 June 2007, p. 11.

[22]      Mr Robin Speed, Committee Hansard, 1 June 2007, p. 7.

[23]      Mr Richard Gilbert, Committee Hansard, 1 June 2007, p. 2.

[24]      Speed and Stracey Lawyers, 31 May 2007, tabled at public hearing, 1 June 2007.

[25]      Mr Mike Callaghan, Committee Hansard, p. 21.

[26]      Mr Mike Callaghan, Committee Hansard, p. 24.

[27]      Mr Mike Callaghan, Committee Hansard, p. 22.

[28]      Mr Mike Callaghan, Committee Hansard, p. 24.

[29]      Mr Mike Callaghan, Committee Hansard, p. 24.

[30]      Mr Mike Callaghan, Committee Hansard, p. 22.

[31]      Mr Mike Callaghan, Committee Hansard, p. 26.

[32]      Mr Mike Callaghan, Committee Hansard, p. 22.

[33]      See EM paragraph 11.23 in relation to excluded amounts.

Labor Senators’ Minority Report

[1]        See Investment and Financial Services Association (IFSA), Submission 6, pp 5-6; the 16 May 2007 letter addressed to the Treasurer, Mr Peter Costello MP, by the Business Coalition for Tax Reform; Real Estate Institute of Australia, Submission 2; The GPT Group, Submission 3; Barclay's Global Investors, Submission 4; MLC Limited, Submission 11; and Property Council of Australia, Submission 5.

[2]        Property Council of Australia, Submission 5,  p 1.

[3]        Mr Trevor Cooke, Committee Hansard, 1 June 2007, p. 3.

[4]        Mr Robin Speed, Committee Hansard, 1 June 2007, p. 4.

[5]        Mr Robin Speed, Committee Hansard, 1 June 2007, p. 4.

[6]        Mr Richard Gilbert, Committee Hansard, 1 June 2007, p. 1.

[7]        Mr Robin Speed, Committee Hansard, 1 June 2007, pp 11 – 12

[8]        Mr Mike Callaghan, Committee Hansard, 1 June 2007, p. 22.

[9]        Mr Mike Callaghan, Committee Hansard, 1 June 2007, p. 22.

[10]      Mr Trevor Cook, Committee Hansard, 1 June 2007, p. 11.

[11]      Mr Mike Callaghan, Committee Hansard, 1 June 2007, p. 23.

[12]      Property Council of Australia, Submission 5, p. 1.