Decision Outcome Favourable Brief summary of facts The two cases were heard together and concerned two unrelated engineers who were engaged by personal services entities "the Entities".
In the first case the personal services entity was a company, of which the first engineer was the sole director and shareholder and in the second case the personal services entity was a trust, of which the second engineer was the controller and a beneficiary. The Entities both operated as independent contractors providing the engineering services of the engineers. The Entities separately contracted with a labour hire firm to provide each engineer's services to a joint venture of construction companies which was responsible for construction costing billions of dollars "the Joint Venture".
The labour hire firm contracted with the Joint Venture to provide engineering and other services. The Joint Venture paid the labour hire firm for the services of the engineers and the labour hire firm then paid the Entities in accordance with their contracts with the labour hire firm.
The engineers provided services only to the Joint Venture in the relevant period. The Joint Venture was not bound by the contracts between the labour hire firm and the Entities. The use of a labour hire firm was standard practice for the relevant industry in Western Australia. Prior to the relevant period both the Entities stopped using one labour hire firm and contracted with another labour hire firm to enable the Entities to be engaged under new contracts.
The labour hire firm had drafted the terms of the contracts in an attempt to legitimately characterise the terms of engagement so that the results test was satisfied. Because the capital gains tax is triggered by actual realised capital gains it is expected that the realisations and the tax rate would move in opposite directions. That is, a cut in rates would give an increase in realisations, at least in the short run.
For that reason the estimated value of the elasticity is usually quoted as a negative number. The stock exchange research suggested a long-term elasticity of more than minus 0. Ralph uses the same figure as the long run estimate with an even higher elasticity of realisations in the short run. Increasing tax collections following cuts in taxes reminds us of some of the American debates in the early s associated with the 'Laffer curve' which purported to show that beyond a certain point increases in taxes were associated with reductions in tax collections.
The Laffer curve became an important element in the thinking behind 'supply side economics,' a doctrine that basically said that tax cuts and other measures to increase incentives were required to boost economic growth.
If it were exactly minus one, then any variation in the tax rate would be followed by an equal and opposite proportionate change in the tax base. In that way the government would collect the same volume of tax no matter what rate it set. Dr Gravelle of the US Congressional Research Service has looked at the relationship between capital gains tax collections and tax rates over many years. She is reported to have said that: 'based on these data, I think that a very small elasticity or a static assumption for the long run would provide a more accurate forecast [of revenue changes].
I have no idea what one would assume about the short run response. I don't think there are any data sets that really help with that number. Normally Government estimates of the budgetary impacts of changes in revenue arrangements or indeed outlay arrangements are calculated on the basis that there is no change in underlying behaviour.
That sensible and cautious approach ensures that revenue measures are not based on speculative assessments of behavioural responses to particular measures. In a memorandum to all departments and agencies prior to the Budget, the Department of Finance and Administration required that 'assumptions and methodology underlying the costings are robust and credible, including that there is a sensible relation between expenses and cash flows.
Even if we could be sure that capital gains tax receipts would increase, there would remain the concern that the increase would be at the expense of taxation on other forms of income. That could reflect people's attempts to disguise other income as capital gains to exploit the different rates on capital gains. It is also important to note that the Ralph Report expects some of this type of activity to occur 'from an expected tendency for some returns to investment to be taken as capital gains rather than as ordinary income.
For example, there will be an increased incentive for shareholders to realise capital gains on shares rather than to receive income as dividends. This seems to be a rather modest estimate given that there are no new proposals designed to prevent the type of avoidance that would be encouraged with lower taxes on capital gains.
Chan And K. We use a three-dimensional Reynolds-stress turbulence model to simulate the air pollution level of each unit in high-rise apartment buildings in a densely populated area in Hong Kong Study Area. We then verify the simulated results with site measurement data. Although the area is small, the variety of building forms and location of streets resulted in significant variation in air quality across apartment units.
The apartments in the Study Area are actively traded and relatively homogenous. We estimate the implicit price by constructing a hedonic price model that includes the simulated apartment specific air pollution level as one of the explanatory variables.
We find that the apartment prices are more sensitive to air quality in more polluted areas. This is achieved within a framework that accounts for endogenously determined structural breaks within the data. The results provide a different perspective on the relationship securitised property has with these markets and sheds new light on their long-run interaction. Once structural breaks are accounted for, the results show that securitised property is sensitive to both interest rate and stock market changes, regardless of the type of securitised property being examined.
Evidence also points to companies with increased debt-to-asset ratios and companies that are REITs tax-exempt are still all influenced by both the equity and fixed income markets. And Ho, D. In Hong Kong, there are prescriptive legal requirements governing the provision of natural lighting and ventilation in private buildings. This paper aims to study the economic impacts of the disposition of re-entrants on property prices with reference to the revelation of the chimney effect of re-entrants after the occurrence of the mass community outbreak of Severe Acute Respiratory Disease SARS in Amoy Gardens in In this study, we use a hedonic pricing model to examine whether flats designed with a re-entrant is sold at a different price than those without a re-entrant.
We draw a sample of property transactions from a popular single residential development with variations in re-entrant designs. A total of transactions were collected, of which 90 were transacted after the SARS event. The model is capable to monitor any significance changes in the premium of re-entrant and its relationship with floor level before and after SARS. Based on the hedonic pricing analysis, we found that the preference for re-entrants is floor-dependent.
This paper examines the current literature on the assessment of the impact of environmental and social characteristics and the ability to assess the triple bottom line of investment property.
Evidence also points to companies with increased debt-to-asset ratios and companies that are REITs tax-exempt are still all influenced by both the equity and fixed income markets. We estimate the implicit price by constructing a hedonic price model that includes the simulated apartment specific air pollution level as one of the explanatory variables. Accelerated depreciation does not give the taxpayer new concessions, rather it brings forward the tax benefits of future depreciation claims. It is certainly not in the interests of transparency for their own logic to remain concealed where the Parliament and the public generally cannot validate the assumptions behind their thinking.
That could reflect people's attempts to disguise other income as capital gains to exploit the different rates on capital gains. Any proposals for changes in the law are matters for government and it is not appropriate for the Commissioner to comment. This is the fundamental structural change that is central to the philosophy of the Ralph Report. Before SARS, homebuyers were not fond of re-entrants on low floor levels, but they were willing to pay more for re-entrants as the floor level increases.