Weekly Tax Highlights - 27th April - 1st May 1998

Alienation of property and Australia's Double Tax Agreements - The Treasurer has announced that the Government has decided to amend the International Tax Agreements Act 1953 to clarify the interpretation of the alienation of property articles in Australia's Double Tax Agreements. This action follows the decision of the Full Federal Court in FC of T v Lamesa Holdings.

Share buy-back is not a "transfer" - The Court of Appeal of the Supreme Court of Victoria has held that a share buy-back under a selective buy-back agreement was not a transfer of a marketable security for the purposes of the Stamps Act 1958 (Vic) (Coles Myer Limited v Commissioner of State Revenue). The analysis in the majority judgment of the effect of a share-buy back under the Corporations Law may have implications for capital gains tax purposes.