The Assistant Treasurer on Fri 8.11.2013, announced that the Board of Taxation will extend its post-implementation review of Div 7A of Pt III of the ITAA 1936 to include the broader taxation framework in which private business operates. Senator Sinodinos said “the Board’s examination of Div 7A highlights that complexities can arise because of the Division’s interaction with other areas of the tax code and its operation in the context of private group tax arrangements”. He said the Board has canvassed 3 models for addressing Div 7A reform and advises that there are complexities associated with each of the options proposed.
According to the extended terms of reference, the Board will:
- examine the broader taxation framework in which Div 7A operates including its interaction with other areas of the tax law;
- examine whether there are any problems with the current operation of Div 7A, that are producing unintended outcomes or disproportionate compliance and administration costs; and
- to the extent that there are problems, recommend options for resolving them so that, having regard to the policy intent of Div 7A and potential compliance and administration costs, the tax law operates effectively.
The Board’s final report is due to the Government by 31 October 2014.
Source: Assistant Treasurer’s media release, 8 November 2013
[LTN 217, 8/11/13]