Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Current HansardDownload Current Hansard   

Previous Fragment    Next Fragment
Thursday, 5 December 1985
Page: 2994

Senator MICHAEL BAUME(11.28) —Everything that we have heard in this last incredible half an hour demonstrates the nonsense involved in this kind of legislation and the absurd situations that develop the more governments interfere in such a ridiculous way in normal, long-established practices by introducing this kind of tax arrangement. It is an absolute nonsense. I remind the Minister of the reality of the meaning of the word `partnership'. As the Minister well knows, there are employee partners in many partnerships-people whose names are on a firm's letterhead, but who are in fact employees.

Senator Walsh —You should know.

Senator MICHAEL BAUME —The Minister well knows that I was an employee, even though he keeps making false accusations against me. He knows perfectly well that employees are classified as partners for letterhead purposes.

Senator Robert Ray —Why do they do that?

Senator MICHAEL BAUME —It is done because of the good name of the employees concerned. I thank Senator Robert Ray for giving me the opportunity to say so. That is a well known and widely established practice. Employees' names appear on lawyers' letterheads and accountants' letterheads. I raise the point that this once again confuses the situation or at least underlines another of the stupidities emerging in this legislation, where in directors may be classed as employees because there is a corporate structure but partners may not. Okay, that situation has existed for a long time, but this law will extend that situation in an absurd way. I take this opportunity to remind Senator Walsh that in the future when he seeks to blackguard me he might describe me accurately-not simply as a partner of a firm which failed 10 years ago-as a non-equity, non-owner employee partner.