Introduction
Arbitration has long been valued as an entirely voluntary
process. In an ideal international commercial arbitration equally
sided parties may freely decide to arbitrate as well as agree on
innumerable options of how exactly possible disputes shall be
resolved: institution or ad hoc arbitration, seat and language of
arbitration, venues and means of proceedings, number and
description of arbitrators, allocation of costs, etc.
Enjoying such procedural freedom, parties frequently decide that
one party saves the option to refer disputes either to arbitration
or to state court whilst the other party is entitled to bring the
disputes exclusively to state court.
Question:
Joseph (an accountant) and his wife Jane (a housewife) borrowed money to purchase a rental property as joint tenants. They entered into a written agreement which provided that Joseph is entitled to 20% of the profits from the property and Jane is entitled to 80% of the profits from the property. The agreement also provided that if the property generates a loss, Joseph is entitled to 100% of the loss. Last year a loss of $40,000 arose.
Requirement:
How is this loss allocated for tax purposes? If joseph and Jane decided to sell the property, how would they be required to account for any capital gain or capital loss?
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The International Chamber of Commerce (ICC) 2021
Arbitration Rules (2021 Rules) amend the 2017 Arbitration Rules
(2017 Rules) and will come into force and apply to arbitrations
submitted to the ICC s International Court of Arbitration from
1 January 2021.
While the revisions to the 2017 Rules are intended to offer
clarity and transparency to parties in complex disputes, this comes
to some extent at the expense of party autonomy. by amending the procedural
framework of ICC arbitrations to better address issues commonly
faced in complex and high-value commercial and investor state