PCG 2017/D16 – Super fund asset parcel selection arrangements based on ‘propagation’ arrangements – when it is satisfactory and when it is not

Tax Month - August 2017

On Mon 21.8.2017, the ATO issued Draft Practical Compliance Guideline: PCG 2017/D16, on propagation arrangements adopted by registrable superannuation entities (RSEs). The draft sets out the ATO’s compliance approach to the use of propagation to select assets for disposal. It is aimed at the large superannuation industry, ie it does not apply to SMSFs. Propagation…

FCT v Normandy Finance and Investments Asia Pty Ltd & Ors – High Court refused taxpayer’s appeal – $4m in payments from a foreign related party were shams not loans

Tax Month - August 2017

The High Court has refused the taxpayers special leave to appeal from the Full Federal Court decision in FCT v Normandy Finance and Investments Asia Pty Ltd & Ors [2016] FCAFC 180. In its December 2016 majority decision, which now stands, the Full Federal Court allowed the Commissioner’s appeal and found that it was not open to…