Daily Archives: November 23, 2019

PCG 2019/D8 – ATO won’t audit deductions claimed for superannuation contributions, made at the end of the year, through the ‘Small Business Superannuation Clearing House’, if the fund finally gets the money the next year

On Thursday 21.11.19, the ATO issued PCG 2019/D8 – dealing with the timing of tax deductions, for super contributions, made through the Small Business Superannuation Clearing House, towards the end of the year. See below for a summary of this draft Practical Compliance Guide. [Tax Month – November 2019]

TD 2019/D12 – payments that would otherwise be deductible, in Australia, could be denied deductions, despite being taxed in the US under their ‘GILTI’ (low taxed income) rules

On Thursday 21 Nov 2019, the ATO issued TD 2019/D12 – which asks the question: ‘is section 951A of the US Internal Revenue Code a provision of a law of a foreign country, that corresponds to section 456 or 457 of the Income Tax Assessment Act 1936 (ITAA36) for the purpose of subsection 832-130(5) of the…

TR 2019/D6 – Capital expenses: labour costs incurred in creating capital assets – the Commissioner ventures the ‘brave’ view they are capital in nature (and not a ‘general deduction’)

On 21.11.19, the Commissioner released TR 2019/D6 – Capital expenses: labour costs incurred in creating capital assets, seeking comments on the draft by 14 February 2020. This is a stunningly important draft ruling as it seeks to turn wages into a capital expense, by looking beyond the advantage sought (to pay for inherently ephemeral labour) to…

Research and Development tax incentives leave Australia near the bottom of the pile for national R&D spend – one idea about what’s to be done

On 22 Nov 2019, the Tax Institute published and article, in their weekly TaxVine (45; 22.11.19) by their Senior Tax Counsel: Bob Deutsch CTA, entitled: Research and development – a new way forward. In his article, he survey’s the effectiveness of Australia’s existing incentives, compares their success, with other parts of the world and suggests a…