TD 2018/D6 – the ‘debt/equity’ rules operate on the ‘arm’s length conditions’ deemed to exist, for the purpose of determining if a ‘transfer pricing benefit’ arises under Subdivision 815-B

Tax Month - November 2018

On Wed 31 Oct 2018, the ATO issued Draft Tax Determination TD 2018/D6, which considers the interaction between the debt/equity rules and Australia’s transfer pricing rules. The Commissioner’s approach is that the debt/equity rules (in Div 974 of the ITAA97) cannot limit the operation of the transfer pricing rules( in Subdiv 815-B) – which appears…

TD 2018/15 – the CGT consequences of granting an easement, profit à prendre or licence over an asset – CGT event D1 (not A1) – limited cost base, no 50% discount, no main residence exemption, no pre-CGT exemption

Tax Month - November 2018

On Wed 31.10.2018, the ATO issued Taxation Determination TD 2018/15 on the CGT consequences of granting an easement, profit à prendre or licence over an asset. In the Commissioner’s view, CGT-event D1 happens (under s104-35 of the ITAA97) when the right is created, rather than it being a s104-10 CGT-event A1 for a partial disposal…