Hybrid Entity Double Taxation: A Case Study on the Taxation of Trans-Tasman Limited Partnerships

Revenue Law Journal, Vol. 21, Issue 1, December 2011

23 Pages Posted: 7 Mar 2012

See all articles by Craig Elliffe

Craig Elliffe

University of Auckland - Faculty of Law

Andrew Yin

affiliation not provided to SSRN

Date Written: December 7, 2011

Abstract

Hybrid entities give rise to international tax problems, and it must be acknowledged, opportunities. Why is this so? This is because, at the heart of the phenomenon, different countries tax systems treat hybrid entities in fundamentally different ways allocating income to different parties. The tax consequences of this divergence of approach by countries can lead to complex and unintended outcomes. By reference to the OECD Report on the taxation of Partnerships, this article looks at whether the treatment of trans-Tasman limited partnerships under the Australian and New Zealand Convention results in double taxation or double non-taxation. The approach taken is to use a case study to illustrate how hybrid entity double taxation arises. The result is that hybrid entity double taxation is, mostly, resolved through the operation of the Convention.

Keywords: hybrid, entities, limited partnerships, Australian tax treaty, New Zealand tax treaty, double taxation, partnership report

JEL Classification: K33, K34

Suggested Citation

Elliffe, Craig Macfarlane and Yin, Yun, Hybrid Entity Double Taxation: A Case Study on the Taxation of Trans-Tasman Limited Partnerships (December 7, 2011). Revenue Law Journal, Vol. 21, Issue 1, December 2011, Available at SSRN: https://ssrn.com/abstract=2017993

Craig Macfarlane Elliffe (Contact Author)

University of Auckland - Faculty of Law ( email )

Private Bag 92019
Auckland Mail Centre
Auckland, 1142
New Zealand

Yun Yin

affiliation not provided to SSRN ( email )

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