Consultation - Preventing Dividend Washing
Submission Date: 17 June 2013
The Taxation Committee of the Business Law Section of the Law Council of Australia (the Committee) provided a submission to Treasury concerning work toward preventing dividend washing arrangements outlined in the Discussion Paper dated June 2013 (Discussion Paper).
The Committee does not support any amendments to the current complex tax laws to deal with the permitted trading known as “dividend washing”.
The Treasury estimates indicate that the current risk to Commonwealth revenue is around $20 million per year. This does not suggest a serious erosion of revenue for the Government.
If dividend washing arrangements are likely to pose a serious revenue risk for the Government, the most appropriate solution appears to be to adjust the institutional trading rules which permit cum-dividend trading after the exdividend date, rather than to amend further the already complex tax rules.
Last Updated on 07/05/2025
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