|
|
|
LAWCOMM 403 long notes.docx
LAWCOMM_403_long_notes.docx
Showing 37 out of 157
LAWCOMM 403 long notes.docx-CONTENTS Tips ...........
LAWCOMM_403_long_notes.docx-CONTENTS Tips ......................................................................................................................................................................................... 4 Introducon ............................................................................................................................................................................
LAWCOMM 403 long notes.docx-CONTENT...
LAWCOMM_403_long_notes.docx-CONTENTS Tips ......................................................................................................................................................................................... 4 Introducon ............................................................................................................................................................................
Page 37
o
This exempon should probably be available to natural persons only, and in their personal capacity only – it
should not be available to companies or unincorporated businesses
SMALL BUSINESS EXEMPTION
Most CGTs provide for an exempon for gains made on the sale of a small business, or on the sale of an interest in a
small business
o
The main jusficaons for such exempons are:
they seem to be polically necessary
they might incenvize entrepreneurship (encourage people to set up small businesses)
Also, taxing gains made on the sale of
very
small businesses:
would raise very lile revenue
would be harsh on the owners of such businesses (because they are likely pung their own
resources at risk, whereas the risk for someone gaining income from employment is less)
would entail disproporonate administrave and compliance burdens
o
Disadvantages:
departure from Henry Simons’ definion of “income”
complex: precluding avoidance, marginal relief (what happens if the business is worth slightly more
than the threshold for being categorized as a small business?)
heavy administrave and compliance burden
o
Such an exempon would have to cover:
sale of some or all of the shares (of a company worth less than threshold)
sale of part or whole of the business (if business worth less than threshold)
If there were to be such an exempon, what should be the threshold?
MAORI LAND
This would be contrary to Henry Simons, but arguments for exempng it include:
o
Equity
o
Administrave and compliance burden because Maori land typically have a very large number of owners, many
of whom will be towards the lower end of the income scale
SAVINGS SCHEMES
This would be contrary to Henry Simons, but arguments for exempng include:
o
Large number of people are not wealthy – they don’t have a lot of money in savings schemes
o
Polically appropriate
o
It is desirable to incenvize saving
However, there would have to be a limit threshold – otherwise, it would be suscepble to abuse (e.g. a rich person
could put their enre property porolio into a savings scheme and be exempt from tax)
RELATIONSHIP PROPERTY
Transfer of asset on relaonship property selement (a divorce resulng in a transfer of relaonship property):
o
It is desirable for there to be no liability to CGT unl they subsequently sell the property
DEATHS, GIFTS AND MIGRATION
It is necessary for a CGT to deal with death, giſts and migraon
DEATH AND INHERITANCE
There are three possibilies to tax inheritances:
1.
Treat death as a disposal of assets (this is the generally preferred opon by economists)
o
Therefore, the estate of the deceased person pays CGT on the market value of the assets held at death, minus
the basis (i.e. the cost)
The estate is taxed in the same way as a person would be if they simply sold the asset immediately
before they died
o
Other features
Ace your assessments! Get Better Grades
Browse thousands of Study Materials & Solutions from your Favorite Schools
Vanderbilt University
Vanderbilt_University
School:
Tax_Law
Course:
Great resource for chem class. Had all the past labs and assignments
Leland P.
Santa Clara University
Introducing Study Plan
Using AI Tools to Help you understand and remember your course concepts better and faster than any other resource.
Find the best videos to learn every concept in that course from Youtube and Tiktok without searching.
Save All Relavent Videos & Materials and access anytime and anywhere
Prepare Smart and Guarantee better grades
Know more
Students also viewed documents
lab 18.docx
lab_18.docx
Course
Course
3
Module5QuizSTA2023.d...
Module5QuizSTA2023.docx.docx
Course
Course
10
Week 7 Test Math302....
Week_7_Test_Math302.docx.docx
Course
Course
30
Chapter 1 Assigment ...
Chapter_1_Assigment_Questions.docx.docx
Course
Course
5
Week 4 tests.docx.do...
Week_4_tests.docx.docx
Course
Course
23
Week 6 tests.docx.do...
Week_6_tests.docx.docx
Course
Course
106
