Implementing the OECD Hybrid Mismatch Rules – draft bill to insert new Div 832 of the ITAA97

Tax Month - November 2017

On 24 November 2017, Treasury released an exposure draft of legislation to address hybrid mismatch arrangements. The exposure draft legislation seeks to implement the recommendations of the 2015 Organisation for Economic Co-operation and Development (OECD) report – Neutralising the Effects of Hybrid Mismatch Arrangements. Hybrid mismatches exploit differences in the tax treatment of an entity…

FISCHER & ORS v NEMESKE PTY LTD & ORS – Family Trust’s distribution of an amount equal to the ‘asset revaluation reserve’ on certain shares (and not the shares themselves) with the ‘loan back’ booked – was effective

Tax Articles

Introduction On April 6th 2016 the High Court handed down a 3-2 majority decision holding, inter alia, that a trustee had validly exercised a power to “advance” and “apply” trust capital, or income, by creating a debt, enforceable at law, that reflected the increase in value of the main asset of the trust, at the…