Protecting superannuation entitlements: draft legislation released – to increase ATO’s power to detect and collect unpaid SGC amounts etc.

Tax Month - January 2018

On 24 January, 2018, the Minister for Revenue released a draft Bill and announced other measures intended to give effect to its Superannuation Guarantee (SG) Integrity Package (which she announced on 29 August 2017). The draft Bill would: allow the ATO, in cases where employers fail to comply with their SG obligations, to issue directions to pay unpaid…

Revised TPP deal nearly done without US – remaining 11 agree on a raft of tariffs to be eliminated or reduced and better service export conditions

Tax Month - January 2018

Apparently a revised Trans-Pacific Partnership between Australia and 10 other countries will be signed soon. The 11 countries are: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam. This is what the Trade Minister: Steven Ciobo indicated in an interview with the ABC’s Fran Kelly (see transcript on Minister’s site). He said: “Well as they…

Class Rulings: CR 2018/4-6 – Govt Bonds exchanged for Chess Depository Instruments, scrip for scrip roll-over relief confirmed for merger, scrip for scrip relief also available for Tatts’ merger with Tabcorp in Dec 2017

Tax Month - January 2018

Three Class Rulings were released by the ATO on Wed 24.1.2018: CR 2018/4 – Australian Government Bond holders electing to exchange bonds for CHESS Depository Interests (CDIs). It states that CGT event H2 will occur when a bondholder chooses to exchange a bond for a CDI in that bond, but that there will be no…

PCG 2018/1 – Thin cap rules for outward investing Australian bank’s – calculating their ‘adjusted average equity capital’

Tax Month - January 2018

The Commissioner released Practical Compliance Guideline PCG 2018/1, on Wed 24.1.2018. It explains how the ATO will administer s820-300(3) of the ITAA 1997 (this is the thin capitalisation rule for outward investing banks/ADI’s and sits within Subdiv 820-D, which is the thin cap rules for outward investing entities). This section (reproduced below): Applies to outward investing banks…