The Australian Public Service Commission has released the findings of its “capability review” of the ATO highlighting opportunities for improvement. The review highlighted various strengths of the agency, but noted that the ATO needs to undergo “transformational change”. The Commission said the taxpayer community will demand greater access to improved services in a digital world,…
The ATO has released its updated list of matters currently under consultation. The list is divided into 3 sections: technical, compliance, and administration. Under the technical list of matters, the ATO lists the following matters as in progress, including: trusts and anti-avoidance rules, alienation of income through discretionary trust partners, and the application of new…
The Tax Office has advised that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the 3rd quarter of the 2013-14 financial year (ie 1 January 2013 to 31 March 2014) are as follows: GIC annual rate is 9.59%; GIC daily compounding rate is 0.02627397%; SIC annual rate is 5.59%; and SIC daily compounding rate is…
The ATO on Thur 19.12.2013, released Practice Statement Law Administration PS LA 2013/4 (GA) to set out the percentage of taxable fuel the Commissioner accepts as a fair and reasonable apportionment of the fuel used in a vehicle for powering the auxiliary equipment of the vehicle. In particular, the PS LA states that the Commissioner…
The ATO on Fri 6.12.2013, issued the following IDs: ATO ID 2013/65: Company tax losses: whether company can disregard concessional tracing rules that apply in relation to more than one stake as part of forming the necessary belief for the purposes of the “no detriment” rule; and ATO ID 2013/66: Company tax losses: can a…
The ATO on Wed 18.12.2013, released Product Ruling PR 2013/24 (Challenger Guaranteed Annuity (Liquid Lifetime)). It applies to entities that purchase an annuity as described in the Ruling from 1 July 2013 until 30 June 2016. Among other things, the Ruling states that regular payments made under the annuity are assessable income under s 27H(1) of the ITAA 1997 to…
The ATO on Wed 18.12.2013, released the following Class Rulings: CR 2013/99: Village Roadshow Limited – return of capital. It applies from 1 July 2013 to 30 June 2014. The Ruling broadly states that the return of capital to shareholders is not a dividend as defined in s 6(1) of the ITAA 1936. CR 2013/100: University of Tasmania 2014 early retirement…
The ATO on Wed 11.12.2013, issued the following Class Rulings which broadly state that the early retirement schemes to be implemented are early retirement schemes for the purposes of s 83-180 of the ITAA 1997: CR 2013/97: Essential Energy’s Network Business Mix and Match Program. It applies from 11 December 2013 to 31 December 2015. CR 2013/98: Department of Human…
The ATO on Wed 4.12.2013, issued the following Class Rulings: CR 2013/95: The Trust Company Limited Scheme of Arrangement and Special Dividend. It applies from 7 May 2013 to 30 June 2014. The Ruling broadly states that CGT event A1 happens as a result of the disposal of shares by shareholders, however, eligible shareholders may choose a partial scrip-for-scrip rollover. CR…
The ATO on Wed 4.12.2013, released Product Ruling PR 2013/22 (Tax consequences for a borrower under a mortgage reduction program managed by Allstate Home Loans). It applies to entities that enter into the scheme from Wed 4.12.2013 until 30 June 2016. Broadly, the Ruling states that provided the scheme is carried out as described, the anti-avoidance provisions…