Is the limited legislation drafted sufficient to make a decision about the merits of the tax value method?
There is a suggestion that the prototype legislation drafted so far is insufficient to make a decision about the merits or otherwise of the tax value method. A: • The tax value method prototype legislation demonstrates what tax legislation would look like if the tax value method were introduced. • The prototype legislation covers major areas of the current law and proposed new areas, including the tax value method core rules, depreciation, rights, accruals under the taxation of financial arrangements and capital gains tax. • While provisions in the Income Tax Assessment Act 1936 must be rewritten whether or not the tax value method is introduced, many provisions in the Income Tax Assessment Act 1997 would not be substantially affected by the tax value method. Further information • The Board of Taxation has developed prototype legislation and explanatory material to evaluate and test the tax value method. Details are available at the Board’s website www.taxboard.gov.au.
