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’)

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

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…

Personal income tax cuts – Bill to implement the 2018 Budget announcement to abolish the 37% rate and extend the 32.5% rate out to $200k – becomes law on 21 June 2018

The Government introduced Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018 on 10 May 2018, one day after the 2018/19 Federal Budget. This is to give effect to the income tax changes for individuals, announced in the Budget. On 21 June 2018, it passed, all stages, and received Royal Assent as Act No. 47. Earlier, on 10…

ATO to wrap up Panama Papers investigations with $65m assessments & 3 criminal investigations; Paradise Papers still a WIP for multi-authority investigations

At a Senate Estimates hearing on 30 May 2018, Neil Olesen, ATO Second Commissioner, Client Engagement Group. With regard to the Panama Papers (the first leak); he said: the ATO had completed 315 reviews or audits as part of its Panama Papers investigations. He said the ATO still had another 81 that are in progress and that…

NSW Duty – Winston-Smith v Chief Comr of State Revenue- NSW ‘landholder’ duty applied because it was ‘just or reasonable’ and the s163H discretion to exempt the transfer of shares did not apply

The NSW Supreme Court has dismissed a taxpayer’s application for review of 2 decisions by the Chief Commissioner of State Revenue. The taxpayer applied for a private ruling on the question of whether the Commissioner would be satisfied that the transfer of 75,000 shares would be an exempt acquisition under s 163H(3)of the Duties Act 1997(NSW). This…

Tax Inspector-General reports on huge increase in complaints since the Four Corners allegations of ATO collections abuses – in appearance before the Senate Estimates Committee

It is inevitable that a new second Australian Taxation Office commissioner will be appointed to hear taxpayers’ appeals, Inspector-General of Taxation Ali Noroozi says. On Tuesday Mr Noroozi told Senate Estimates complaints had increased following the joint Fairfax Media-ABC investigation into the ATO. His office acts as a watchdog over the ATO and also hears individual and small business complaints…

12 month Superannuation Guarantee Amnesty – to cover shortfalls over nearly 26 years from 1 July 1992 to 31 March 2018, disclosed between 24 March 2018 to 23 May 2019

Superannuation Guarantee Amnesty From Ashurst Newsletter (Geoff Mann) The federal government announced a 12 month Superannuation Guarantee Amnesty (the Amnesty) on 24 May 2018. It also introduced a bill giving effect to the Amnesty, the Treasury Laws Amendment (2018 Superannuation Measures No 1) Bill 2018 (the Bill). This will insert a new s74 into the SGC…

TD 2018/D2 – s40-80(1) instant write-off for the cost of mining rights etc. first ‘used’ for exploration – by doing something permitted by the relevant ‘right’

On Wed 13.6.2018, the ATO issued Draft Taxation Determination TD 2018/D2 on what constitutes a “use” (and potentially first use) of a mining, quarrying or prospecting right. An outright deduction is available for the cost of such a right if the requirements in s40-80(1) ITAA97 are satisfied. A key requirement is that the first use…