PS LA 2016/2 – Transfer pricing penalties for Subdiv 815-A: 25% or 10% if reasonably arguable rising (c/f 50% or 25% for post transition Subdiv 815B adjustments)

Tax Month - May 2016

On Thurs 5 May 2016, the ATO  released Practice Statement Law Administration PS LA 2016/2 – Administration of scheme penalties arising from the application of Subdiv 815-A for income years which started on or after 1 July 2004 and before 1 July 2012 (transition period). For income years which commenced within the transition period, the Practice Statement explains when liability for a…

CR 2016/24 & 25 – Early Retirement Scheme and Scheme of Arrangement and payment of an ‘interim’ and ‘special’ dividend

Tax Month - May 2016

On Wed 4.5.16 the ATO issued the following Class Rulings: CR 2016/24: Essential Energy Transformation Early Retirement Scheme. It applies from 4 May 2016 to 31 December 2017. CR 2016/25: Colorpak Limited – Scheme of Arrangement and payment of Interim and Special Dividends. It applies from 1 July 2015 to 30 June 2016. [CR 2016/24] [CR 2016/25] [LTN 84, 4/5/16]

Featherby v FCT – No grounds to re-open case to hear further submissions from taxpayer (exceptional circumstances, especially for submissions)

Tax Month - May 2016

The Federal Court has dismissed a taxpayer’s application to re-open a hearing (for which judgment has been reserved) to take further submissions of the operation of s175 of the ITAA 1936 in relation to the dispute. In doing so, the Court acknowledged that while it had full power to rehear or review a case until…

Review of retirement income stream regulation – Government releases Review Report recommending that the current annual minimum drawdown requirements be continued but that other requirements be relaxed

Tax Month - May 2016

On 3 may 2016, the Government released the final report of its Review of retirement income stream regulation, together with its response to the review, which was to accept all 7 recommendations. [LTN 84, 4/5/16] Government’s 2013 election and subsequent commitments The Government’s superannuation 2013 election commitments included reviewing: the regulatory barriers restricting the availability of relevant and…

Budget Tax Announcements – ATO website pages including a list of starting dates

Tax Month - May 2016

Following the 2016 Federal Budget, on Tue 3.5.2016, the ATO released a number of webpages highlighting various proposed tax measures (see below). The ATO has also prepared a webpage summarising start dates of various Budget proposals. From the ATO website: Multinational tax measures Implementation of the OECD hybrid mismatch rules – The ATO notes that “legislation is currently being…

Encouraging venture capital investment in Financial Technology (‘FinTech’) – Govt seeks feedback, including on targeted tax incentives

Tax Month - May 2016

The Government is calling for feedback on the best way to ensure investors into FinTech startup activities can be eligible for the venture capital tax concessions. The Government’s FinTech statement, released in March 2016, committed to encouraging investment in FinTech firms by ensuring that the tax concessions are available for venture capital investments in FinTech startups, including banking and…

OECD proposals for mandatory disclosure of aggressive tax positions: Treasury issues paper to consult on how this should be implemented given the existing Australian laws

Tax Month - May 2016

On 3 May 2016, the Government announced that it will seek community input on the OECD’s proposals for Mandatory Disclosure Rules, which require tax advisers and/or taxpayers to make early disclosures of aggressive tax arrangements (often before income tax returns are lodged), to provide tax authorities with timely information on arrangements that have the potential to undermine…

Industry Research and Development Amendment (Innovation and Science Australia) Bill 2016 introduced to make consequential amendments (and lapsed on Parliament being dissolved)

Tax Month - May 2016

The Industry Research and Development Amendment (Innovation and Science Australia) Bill 2016 was introduced into the House of Reps on Wed 4.5.2016. The Bill makes consequential amendments to a number of Acts in relation to broadening the purposes and functions under the Industry Research and Development Act 1986 to provide for strategic advice and programs in relation to industry, innovation, science and research.…

Managed Investment Trust Bills – package of 4 Bills passed into law

Tax Month - May 2016

The Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2015, Income Tax Rates Amendment (Managed Investment Trusts) Bill 2015, Medicare Levy Amendment (Attribution Managed Investment Trusts) Bill 2015 and the Income Tax (Attribution Managed Investment Trusts – Offsets) Bill 2015 passed the Senate without amendment on 4 May 2016 and received Royal Assent on 5 May 2016 (as Acts No.…