PCG 2018/D3 – Income Tax: central management and control test of residency: identifying where a company’s central management and control is located – Joint Bodies’ post-Bywater Submission

Tax Articles

Joint Submission of the Tax Institute, Law Council of Australia, Chartered Accountants Australia and New Zealand, Corporate Tax Association and Group of 100 on the ATO’s draft Practical Compliance Guideline    25 July 2018  Mr Bruce Lee  Australian Taxation Office  GPO Box 9977  BOX HILL VIC 3128  By email: bruce.lee@ato.gov.au  Dear Bruce,  Practical Compliance Guideline…

Greig v FCT – Deduction for share losses and legal fees denied – not acquired as part of a profit making undertaking or scheme (just ordinary investment)

Tax Month - July 2018

The Federal Court has held that a taxpayer was not entitled to a deduction under s 8-1 of the ITAA 1997 for share losses exceeding $11m (in 62 purchases) and legal fees of just over $500,000. The facts were these. Between 2008 and 2014 the taxpayer expended many millions of dollars on share purchases, typically based…

To be or not to be an SGE for CbC (‘Significant Global Entity’ for ‘Country-by-Country’ Reporting)

Tax Articles

On 20 July, Treasury released an exposure draft for consultation which will extend the Significant Global Entity (SGE) definition and, amongst other things, align Australia’s Country-by-Country (CbC) reporting framework with the OECD model requirements [see related TT Article].  This measure was announced in the Federal Government’s Budget earlier this year and consultation remains open until…

Reportable payment system to be extended to road freight, IT and security providers – to Implement the balance of the ‘Black Economy’ Taskforce’s Final Report recommendations – draft legislation released

Tax Month - July 2018

On Monday Mon 23.7.2018, Treasury released exposure draft legislation, to further expand the taxable payment reporting system (Reporting System), which is in Div 396 of the TAA 1953. This measure was previously announced in the 2018-19 Budget as part of other measures aimed at tackling the black economy. The ‘Black Economy Taskforce’s Interim Report,it recommended that…