Report on implementing OECD’s BEPS Action 2 to eliminate hybrid mismatch arrangements – report released with announcement to legislate

In the 2016-17 Federal Budget (on 3.5.16), the Government announced that it would implement the OECD’s rules in BEPS Action 2 to eliminate hybrid mismatch arrangements, taking into account the recommendations made by the Board of Taxation in its report on the Australian implementation of the OECD hybrid mismatch rules. The report was announced on…

Voluntary ‘Tax Transparency Code (TTC) – Board recommendations for Large companies (over $500m turnover) and Medium companies (over $100m turnover) – report released

The Government released the Board of Taxation’s final report on a voluntary tax transparency code (TTC) on 3 May 2016. On 11 December 2015, the Board released a consultation paper. The Board completed its development of a tax transparency code and provided its report to Government on 16 February 2016. The code is designed to encourage greater public disclosure of tax…

Implementing a Diverted Profits Tax – Treasury Consultation Paper – May 2016

BACKGROUND TACKLING MULTINATIONAL TAX AVOIDANCE The Government is strongly committed to ensuring that multinationals pay their fair share of tax in Australia. The Government has been working determinedly, in partnership with the Organisation for Economic Co-operation and Development (OECD) and through its leadership role in the G20, to ensure multinationals are paying their fair share…

PS LA 2016/2 – Transfer pricing penalties for Subdiv 815-A: 25% or 10% if reasonably arguable rising (c/f 50% or 25% for post transition Subdiv 815B adjustments)

On Thurs 5 May 2016, the ATO  released Practice Statement Law Administration PS LA 2016/2 – Administration of scheme penalties arising from the application of Subdiv 815-A for income years which started on or after 1 July 2004 and before 1 July 2012 (transition period). For income years which commenced within the transition period, the Practice Statement explains when liability for a…

CR 2016/24 & 25 – Early Retirement Scheme and Scheme of Arrangement and payment of an ‘interim’ and ‘special’ dividend

On Wed 4.5.16 the ATO issued the following Class Rulings:

  • CR 2016/24: Essential Energy Transformation Early Retirement Scheme. It applies from 4 May 2016 to 31 December 2017.
  • CR 2016/25: Colorpak Limited – Scheme of Arrangement and payment of Interim and Special Dividends. It applies from 1 July 2015 to 30 June 2016.

[CR 2016/24] [CR 2016/25] [LTN 84, 4/5/16]

Featherby v FCT – No grounds to re-open case to hear further submissions from taxpayer (exceptional circumstances, especially for submissions)

The Federal Court has dismissed a taxpayer’s application to re-open a hearing (for which judgment has been reserved) to take further submissions of the operation of s175 of the ITAA 1936 in relation to the dispute. In doing so, the Court acknowledged that while it had full power to rehear or review a case until…

Review of retirement income stream regulation – Government releases Review Report recommending that the current annual minimum drawdown requirements be continued but that other requirements be relaxed

On 3 may 2016, the Government released the final report of its Review of retirement income stream regulation, together with its response to the review, which was to accept all 7 recommendations. [LTN 84, 4/5/16] Government’s 2013 election and subsequent commitments The Government’s superannuation 2013 election commitments included reviewing: the regulatory barriers restricting the availability of relevant and…

Budget Tax Announcements – ATO website pages including a list of starting dates

Following the 2016 Federal Budget, on Tue 3.5.2016, the ATO released a number of webpages highlighting various proposed tax measures (see below). The ATO has also prepared a webpage summarising start dates of various Budget proposals. From the ATO website: Multinational tax measures Implementation of the OECD hybrid mismatch rules – The ATO notes that “legislation is currently being…