Today [Wed 27.6.2018], the ATO issued an Addendum to Taxation Ruling TR 2005/8, its ruling on the government services articles in Australia’s tax treaties. The ruling is amended to: incorporate the revised DTA between Australia and Germany, which came into force on 7 December 2016; remove outdated guidance concerning s 23AG of the ITAA 1936; and remove the…
Taxation Determination TD 2018/10, issued on Wed 27.6.2018, setting out the amounts the Commissioner accepts, for the 2017-18 income year, as estimates of the value of goods taken from trading stock for private use by taxpayers in certain specified industries. These amounts (which exclude GST) are: Business type Adult/child over 16 years ($) Child 4-16…
On 27 June 2018, the ATO issued Law Companion Ruling LCR 2018/4 on the recently enacted measure requiring purchasers of newly constructed residential premises (or new subdivisions) to remit GST directly to the ATO as part of the transaction (finalising LCR 2018/D1). For a fuller discussion about the operation of these provisions, and the draft…
On 27 June 2018, the ATO released a draft updated version of Practical Compliance Guideline PCG 2017/1, its guidance on transfer pricing issues related to centralised operating hubs (PCG 2017/1DC). PCG 2017/1 contains a hub risk assessment framework and one schedule covering offshore marketing hub arrangements. When PCG 2017/1 was first issued, the ATO indicated…
On 21 June 2018, the Minister for Revenue and Financial Services, Kelly O’Dwyer, introduced the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 into the House of Representatives, which it passed on 28 June 2018. Also, on 21 June 2018, the Senate referred the provisions of this Bill to its Economics Legislation Committee for inquiry and…
On 28 June 2018, the Treasury released a proposal paper, Stapled Structures – Integrity conditions for transitional rules and infrastructure concession. The paper outlines the proposed conditions stapled entities must comply with to access the infrastructure concession and/or transitional arrangements. The conditions include: the extension of existing integrity rules, that apply to Managed Investment Trusts…
On 26 June 2018, the Australian Taxation Office (ATO) released an update on the Reportable Tax Position (RTP) Schedule clarifying how the information is used. The system applies to companies and is done through the Commissioner’s power to set out the information he wants in taxpayers’ annual tax returns. The ATO advised that the RTP…
In the 8 May 2018 Budget, the Treasurer, foreshadowed action on the digital economy. He said that “we need to do more” – referring to the Government’s crackdowns on multinationals (including the MAAL), which have prompted Multi-nationals to book and additional $7 billion a year in sales in Australia (but have resulted in way less…
The Private Senator’s Taxation Administration Amendment (Corporate Tax Entity Information) Bill 2017, which was introduced in the Senate on 14 August 2017 by the former ALP Senator Katy Gallagher, was passed on Monday 25.6.2018, by the Senate with amendments from the Greens. This Bill would amend law, that requires the Commissioner to publicly disclose certain high level…
Treasury Laws Amendment (2018 Measures No. 4) Bill 2018 was introduced into Parliament on 28 March 2018, was passed by the Lower House on 25 June 2018 and moved to the Senate on the same day. The Bill would amend: taxation legislation to: enable the Commissioner of Taxation to issue directions to employers to: pay…