Franking credit rate equals 27.5% if company’s prior year turnover satisfies the new year’s turnover threshold for a 27.5% tax rate – ATO’s guidance

Tax Month - August 2017

Franking credit rates also reduce, in line with the reductions in the relevant company’s reducing corporate tax rate, which is complex (see related Tax Month article). What follows is the ATO’s summary of how to calculate the company’s franking credit amount, as its corporate tax rate reduces. Calculating the maximum franking credit From the 2016–17…

Reducing the corporate tax rate – ATO’s summary of the relevant law, bills and progressive reduction of the tax rate, to 25%, for all companies by 2026/27

Tax Month - December 2017

Practitioners will need to be on top of the reductions in the corporate tax rates, which can be confusing. The following is helpful, as it is the ATO’s summary of the relevant Acts and Bills, with the relevant ‘phase in’ dates and thresholds spelt out in tables. On 1 September 2016, the Government introduced Treasury…

Board of Taxations December 2017 meeting – CEO’s report – pipeline of possible projects; Sounding Board; Tax Transparency Code report (120 signatories – 50% of company tax)

Tax Month - December 2017

The Board of Taxation’s CEO: Ms Karen Payne, reported on the Board’s meeting on Thursday 7 December 2017 (the final meeting for the year). Pipeline of possible projects The Board continued to discuss the scope and content of a number of possible projects, including: A review of small business tax concessions; A comparison of the…

Trust vesting – ATO seeks feedback on TR 2017/D10 and overviews how a trust comes to vest and with what effect

Tax Month - December 2017

On 18 Dec 2017, the ATO posted an article drawing attention to its recently released draft Tax Ruling on vesting trusts: TR 2017/D10 (see related Tax Month article). It advises as follows. What happens to a trust on vesting will depend on the requirements set out in your client’s trust deed. Broadly, beneficiary interests in…

PCG 2017/4 – ATO guidance on assessing cross-border, related ‘financing arrangements’ risk levels – self assessed and ATO assessment for audit or further inquiry

Tax Month - December 2017

On 18 Dec 2017, the ATO finalised its Practical Compliance Guideline PCG 2017/4 on its compliance approach to cross-border related financing arrangements. It also posted a brief article, about the finalised PCG, including the main changes since the draft. The guidance explains how taxpayers can price related party loans to demonstrate they are ‘low risk’ and avoid compliance action.…