This Draft, released on Wed 16.4.2014, explains a process for transfer pricing documentation when ATO officers conduct a review of transfer pricing. The ATO says the transfer pricing documentation requirements of an entity as outlined in s 284-255 of the TAA will be met where the entity has made its best efforts to comply with those…
This Draft, released on Wed 16.4.2014, concerns the ATO’s administration of transfer pricing penalties under s 284-145(2B) of Sch 1 to the TAA for income years commencing on or after 29 June 2013. It explains: when an entity will be liable for a transfer pricing penalty. Basically, an entity will be liable to a scheme penalty under s 284-145(2B) where…
The ATO has released an updated version of Practice Statement Law Administration PS LA 2003/12, amended as at 10 April 2014. The Statement deals with the CGT treatment of a trustee of a testamentary trust for the purposes of Div 128 of the ITAA 1997. The amendments to PS LA 2003/12 update the Preamble and insert a new…
The ATO on Wed 16.4.2014, released Class Ruling CR 2014/39: Income tax: Microsoft Corporation 2001 Stock Plan. The Ruling states that the Stock Awards (SAs) acquired by Participants under the Microsoft Corporation 2001 Stock Plan are ESS interests for the purposes of s 83A-10(1) of the ITAA 1997 and that Subdiv 83A-C applies in relation to the…
The ATO Wed 9.4.2014, issued Product Ruling PR 2014/7 (Tax consequences for a borrower procuring a new investment loan as part of a mortgage reduction program managed by Allstate Home Loans). Provided the scheme ruled on is entered into and carried out as described in the Product Ruling, the ATO says the anti-avoidance provisions in…
The ATO on Wed 9.4.2014, released the following Class Rulings: CR 2014/36: CFS Retail Property Trust Group stapled security – units in CFS Retail Property Trust 2 replaced by shares in CFX Co Limited. According to the Ruling, CGT event A1 happened when the unit holders of CFS Retail Property Trust 1 (CFX 1) transferred…
The ATO Wed 2.4.2014 released the following Class Rulings: CR 2014/34: Queensland Urban Utilities 2014 early retirement scheme. It applies from Wed 2.4.2014 to 31 December 2014. Broadly, the Ruling states that the early retirement scheme to be implemented by Queensland Urban Utilities is an early retirement scheme for the purposes of s 83-180 of the ITAA 1997.…
The ATO Wed 2.4.2014, released the following Product Rulings: PR 2014/5: Macquarie NRAS Trust. It applies to investors that enter into the scheme from Wed 2.4.2014 to 30 June 2017. The Ruling broadly states that an investor will be assessable under s 97(1)(a) of the ITAA 1936 on so much of that share of the net income of…
This Draft TD, issued on Wed 23.4.2014, states that forex realisation event 4 happens to the debtor under s 775-55(1) of the ITAA 1997 on repayment of a loan taken out prior to the effective date of a choice to use the applicable functional currency and denominated in the same non-AUD currency that later becomes the…
This Determination was issued on Wed 30.4.2014 and states that the application of Pt IVA of the ITAA 1936, to any particular scheme, depends on a careful weighing of all the relevant facts and surrounding circumstances of each case. It states that without all relevant information, it is not possible to state definitively whether a provision…