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Taxing Non-Fixed Trusts

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Author Info
Elaine Abery
Abstract

Tax policy is evaluated according to three criteria: equity, efficiency and simplicity. This paper looks at the history of the withdrawn New Business Tax System (Entity Taxation) Bill 2000, which proposed to tax non-fixed trusts in a manner stated to be comparable to the taxation of companies. The Bill attracted almost universal criticism. The three criteria for evaluating tax policy are applied to the Non-Fixed Trust Regime to understand why the Regime was not implemented. The Non-Fixed Trust Regime did not succeed because it sought to apply a regime to non-fixed trusts that would have been much more onerous than that applying to other corporate entities. The Non-Fixed Trust Regime would have been less efficient, less equitable and less simple than the prevailing trusts taxation regime.

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File URL: http://www.atax.unsw.edu.au/ejtr
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Publisher Info
Paper provided by ATAX, University of New South Wales in its series Taxation with number eJournal of Tax Research Vol 3 No. 2.

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Length: 14 pages
Date of creation: 10 Jan 2006
Date of revision:
Handle: RePEc:nsw:discus:325

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Related research
Keywords: Tax; non-fixed trusts;

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This page was last updated on 2009-12-2.


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