The Resource Tax treaty interpretation : does "income tax" include tax on capital gains?

Tax treaty interpretation : does "income tax" include tax on capital gains?

Label
Tax treaty interpretation : does "income tax" include tax on capital gains?
Title
Tax treaty interpretation : does "income tax" include tax on capital gains?
Creator
Subject
Language
eng
Summary
Virgin Holdings SA v FCT was a decision in the Federal Court of Australia in late 2008. It concerned a very important issue in the interpretation of the Australia-Switzerland double taxation agreement. This was whether the term "income tax" included tax on capital gains. The Australian Taxation Office had long taken the stance that it did not. The Australian Tax Office viewed double tax agreements concluded prior to the introduction of capital gains tax in 1986 as having no application to, or importantly, no restriction upon, their assessment of capital profits. Effectively, the approach regarded the definition of "income tax" in a static way, limiting the definition to the taxes imposed at the date of the signing of a double tax agreement. Edmonds J in the Federal Court disagreed with this approach and held that the term "income tax" encompassed a subsequently imposed capital gains tax. This case comment considers the implication of this decision from a New Zealand perspective, concluding that the approach of a New Zealand Court would be similar. If this is correct, then the decision has wide-ranging implications to the decision New Zealand might make in respect of the introduction of any new taxes, such as capital gains tax. In particular, it raises the key issue that the international double tax conventions concluded by New Zealand may prohibit the taxation of capital gains in respect of moveable property, when the disposition is made by an entity which has no permanent establishment in New Zealand
Citation source
In: New Zealand journal of taxation law and policy. - Wellington. - Vol. 15 (2009),
http://library.link/vocab/creatorName
Elliffe, C
Language note
English
http://library.link/vocab/subjectName
  • tax treaty
  • treaty interpretation
  • income tax
  • capital gains tax
  • case law
Label
Tax treaty interpretation : does "income tax" include tax on capital gains?
Instantiates
Publication
Label
Tax treaty interpretation : does "income tax" include tax on capital gains?
Publication

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