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

Tax Month - June 2018

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…

ATO Reportable Tax Position Schedule – ATO updates its website to encourage a wide interpretation of RTP questions

Tax Month - June 2018

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…

Reduction of ‘private companies’ total income threshold, for public reporting of high level tax data – Private Senator’s Bill passes Senate and moves to Lower House

Tax Month - June 2018

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 – strengthen SG Super contribution compliance, MySuper Core Provisions, Common Reporting Standard, off-shore information notices, disclose SCT information, update DGRs

Tax Month - June 2018

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…

Treasury Laws Amendment (Tax Integrity and Other Measures No 2) Bill 2018 – Hybrid Mismatch Rules; Film Producer Offset; Tax Exemption for World Twenty20 Cricket; Korean War Memorial DGR – passed Lower House

Tax Month - June 2018

The Treasury Laws Amendment (Tax Integrity and Other Measures No 2) Bill 2018 was introduced in the House of Reps on Thursday, 24.5.2018 and was passed in that House on 25.6.2018. It proposes to introduce the following. HYBRID MISMATCH RULES: amend the ITAA 1997 and ITAA 1936 to implement OECD BEPS hybrid mismatch rules as…

Superannuation Integrity Measures Bill – SG Amnesty, SG Opt-out for certain high earning employees, NALI extended to non-arm’s length expenses, LRBA changes – passes Lower House 21 June 2018

Tax Month - June 2018

On Thursday, 21 June 2018, the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 passed the Lower House and moved to the Senate. Prior to that, on Monday, 18 June 2018, the Senate Economics Legislation Committee has released its report and recommended the Bill be passed. The Labor Senators on the Committee, however, opposed…

PCG 2018/D4 – Anti-Hybrid Bill – ATO would not apply Part IVA to a scheme to unwind certain arrangements before the 1 January 2019 start date of the new Bill (avoiding a future ‘tax benefit’)

Tax Month - June 2018

On Thursday, 21 June 2018, the ATO issued Draft Practical Compliance Guideline PCG 2018/D4 , which provides guidance on the ATO’s compliance approach to restructures in response to the introduction of the hybrid mismatch rules. These measures (in the Treasury Laws Amendment (Tax Integrity and Other Measures No 2) Bill 2018) address certain hybrid arrangements that…

TR 2018/5 & PCG 2018/D3 – Company residence: ‘central management and control’ test after the Bywater Investments decision

Tax Month - June 2018

On Thursday 21 June 2018, the Commissioner issued a final ruling: TR 2018/5 and a draft Practical Compliance Guideline: PCG 2018/D3 about the ‘central management and control’ test, following the High Court decision in Bywater Investments Limited & Ors v FCT [2016] HCA 45. In this case, companies set up to be non-resident, by having…