Daily Archives: June 30, 2018

‘Government services’ articles in Australia’s DTAs – Addendum to TR 2005/8 to update various changes

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amended to: incorporate the revised DTA between Australia and Germany, which came into force on 7 December 2016; remove outdated guidance concerning s 23AG of the ITAA 1936; and remove the…

TD 2018/10 – Value of goods taken from stock for private use

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…

LCR 2018/4 – purchasers’ obligation to pay GST amounts on taxable supplies of certain ‘new’ residential premises and potential residential land – including ‘clarification’ of wrongly withheld refunds

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…

Non-core Procurement Hubs – draft ‘Second Schedule’ to PCG 2017/1 – transfer pricing ‘green zone’ 25% markup or 100% attribution

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…

Super protection Bill – ‘exit fee’ prohibition; sub$6k small accounts: 3% fee cap, ‘opt-in’ insurance (under 25’s & ‘inactive’), transfer ‘inactive’ accounts to Commissioner; transfer ‘inactive’ to ‘active’ accounts

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…

Stapled Structures – Integrity Measures Proposal Paper – extend existing MIT ‘arm’s length rent rule’ and introduce ‘statutory caps’ on cross-staple rent etc.

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…