Taxation of Financial Instruments

Subject 730-844 (2008)

Note: This is an archived Handbook entry from 2008. Search for this in the current handbook Search for this in the current handbook

Credit Points: 12.500
Level: Graduate/Postgraduate
Dates & Locations:

This subject has the following teaching availabilities in 2008:

Semester 2, - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable


Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: 24 - 26 contact hours per subject.
Total Time Commitment: The time commitment for this subject depends on the candidate's background and experience.
Prerequisites: Prerequisite

Successful completion of 'Taxation of Business and Investment Income A' or equivalent professional experience
Corequisites: N.A.
Recommended Background Knowledge: None
Non Allowed Subjects: None
Core Participation Requirements: N.A.

Coordinator

Professor Tim Edgar
Subject Overview:

Objectives:

A candidate who has successfully completed the subject should:

  • Be able to understand the broad economic features of financial instruments that are relevant to the tax system
  • Be able to apply the relevant concepts in working through technical issues raised by the Australian TOFA legislation
  • Compare and contrast different country approaches to the subject
  • Be able to reason from first principles in understanding and critiquing legislative design.

Syllabus:

This subject reviews the Australian TOFA and related rules, as well as the basic policy and doctrinal principles relevant to the income tax treatment of financial instruments generally. The format of the subject is a combination of lectures and case studies.

Principal topics will include:

  • General tax policy principles and financial market theories relevant to the income tax treatment of financial instruments
  • Debt-financing techniques, particularly the treatment of interest surrogates and hybrid debt instruments
  • Equity-financing techniques and, in particular, the classification of instruments as debt or equity
  • Income tax treatment of hedging transactions and synthetic instruments
  • Income tax issues raised by the cross-border use of financial instruments
  • Treatment of derivative instruments under the goods and services tax.
Assessment:
  • Examination 3 hours (100%) (10 December, pm)
    or
  • Research paper 10,000 words (topic approved by the subject coordinator) (5 February 2009)
Prescribed Texts: Core subject materials will be provided free of charge to all students. Some subjects require further texts to be purchased. Please visit the subject homepage on the Melbourne Law Masters website by following the link at the bottom of this subject entry.
Breadth Options:

This subject is not available as a breadth subject.
Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills: Please see the Subject Objectives for this information.
Links to further information: 730-844Taxation of Financial InstrumentsMelbourne Law Masters, postgraduate law, post-graduate law, graduate law2008

Objectives:

A candidate who has successfully completed the subject should:

  • Be able to understand the broad economic features of financial instruments that are relevant to the tax system
  • Be able to apply the relevant concepts in working through technical issues raised by the Australian TOFA legislation
  • Compare and contrast different country approaches to the subject
  • Be able to reason from first principles in understanding and critiquing legislative design.

Syllabus:

This subject reviews the Australian TOFA and related rules, as well as the basic policy and doctrinal principles relevant to the income tax treatment of financial instruments generally. The format of the subject is a combination of lectures and case studies.

Principal topics will include:

  • General tax policy principles and financial market theories relevant to the income tax treatment of financial instruments
  • Debt-financing techniques, particularly the treatment of interest surrogates and hybrid debt instruments
  • Equity-financing techniques and, in particular, the classification of instruments as debt or equity
  • Income tax treatment of hedging transactions and synthetic instruments
  • Income tax issues raised by the cross-border use of financial instruments
  • Treatment of derivative instruments under the goods and services tax.
  • Examination 3 hours (100%) (10 December, pm)
    or
  • Research paper 10,000 words (topic approved by the subject coordinator) (5 February 2009)
Prerequisite

Successful completion of 'Taxation of Business and Investment Income A' or equivalent professional experience

N.A.24 - 26 contact hours per subject.Core subject materials will be provided free of charge to all students. Some subjects require further texts to be purchased. Please visit the subject homepage on the Melbourne Law Masters website by following the link at the bottom of this subject entry.Please see the Subject Objectives for this information.The time commitment for this subject depends on the candidate's background and experience.N.A.Please see the subject homepage on the Melbourne Law Masters website for up to date timetable information.Professor Tim EdgarLawFor the latest information on this subject, please visit: http://www.masters.law.unimelb.edu.au/subject/730844P12.500Semester 2NLawLaw730-844

Download PDF version.