The SMSF Association put out a media release, on 25 July 2018, tackling the Productivity Commission’s draft findings, about the cost effectiveness of self-managed super funds (SMSFs). It says the Commission uses evidence that is “fundamentally flawed” and does not consider broader motivations on why individuals set up SMSFs. “Factors such as data problems, investment…
On 15 December 2017, the ATO released the report, Tax and Corporate Australia. This report identified that there is a key compliance risk associated with the transfer pricing of inbound supply chain (ISC) arrangements. The report questions whether appropriate profit is being recognised in Australia where goods or services are being purchased from a related party and…
Large public and multinational groups with turnover above $250 million comprise what the ATO calls the ‘Top 1000’ and it has a ‘performance program’ to review the income tax affairs of those that that they do not engage with through pre-lodgment compliance reviews or annual compliance arrangements. On 23 July 2018, the ATO uploaded a…
On Monday 9 July 2018, the ATO uploaded a Draft Paper providing outlines of real cases and decisions being made by the ATO in property developer cases. The Paper is intended to provide a transparent view into the decisions we are making on fact driven cases where a more technical product is not suited. The…
On Wed 25.8.18, the ATO issued Taxation Determination TD 2018/14, confirming that the Div 7A benchmark interest rate is 5.20% for the 2018-19 income year (down from 5.30% for 2017-18). The ‘benchmark’ rate is used as a minimum amount, that a company must charge, on a loan to a shareholder or their associate, to put the…
On Wed 25.7.2018, the ATO released an updated version of Practical Compliance Guideline PCG 2017/2, its guidance on simplified transfer pricing record keeping options. The PCG notes that: Documenting your transfer pricing to meet all of the requirements of Subdivision 284-E of Schedule 1 to the Taxation Administration Act 1953 (TAA) may impose an administrative…
On Wednesday 25.7.2018, the ATO issued Draft Practical Compliance Guideline PCG 2018/D5 (Enterprise Tax Plan: small business company tax rate change: compliance and administrative approaches for the 2015-16, 2016-17 and 2017-18 income years). This 2018 draft PCG replaces Draft PCG 2017/D7, which only covered the 2017 financial year and was not as extensive. This 2018 draft…
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…
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…
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…