This week the Australian Treasury released a discussion paper “Preventing Dividend Washing” which will form the basis of their consultation on the design and implementation of the reform proposal. This FRDP discusses the practice by posing three questions: should the practice be permitted? What is the rationale for allowing the practice? Are there simple alternative solutions based on the rationale?

Download the Financial Regulation Discussion Paper

This paper was prepared by Professor Kevin Davis, Research Director of the Australian Centre for Financial Studies. This has been submitted to the Treasury’s consultation Protecting the Corporate Tax Base from Erosion and Loopholes – Preventing ‘Dividend Washing, open for comments till Monday 17 June 2013.

The ACFS Financial Regulation Discussion Paper series provides independent analysis and commentary on current issues in financial regulation with the objective of promoting constructive dialogue among academics, industry practitioners, policymakers and regulators and contributing to excellence in Australian financial system regulation.

To read more papers in the FRDP series click here