Category Archives: Tax Month – April 2017

TD 2017/10 – ‘Incidental costs’ can be included in the ‘cost base’ of an asset even though they are incurred after the relevant CGT event – they can still ‘relate to’ the CGT event under s110-35(1)(b)

On 5 April 2017, the Commissioner issued TD 2017/10, ruling that costs that a taxpayer incurs, after a CGT event happens, can still ‘relate to’ that CGT event under paragraph 110-35(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) and thus be ‘incidental costs’ that can be counted in the ‘second element’ of an assets’…

GST refunds – IGT to review ATO performance after the Multi-flex case prompted the change in the law (s8AAZLGA) to allow refunds to be held back for the time it takes to investigate

On 5 April, 2017, the Inspector-General of Taxation (IGT), Mr Ali Noroozi, announced terms of reference for his review into the Goods and Services Tax (GST) refund verification process. Extract from the ‘Terms of Reference’ Historically, the ATO retained GST refunds, under its general powers of administration (s356-5 of the Sched 1 of the TAA),…

Treasury Laws Amendment (2017 Measures No 1) Bill 2017 – allowing ‘Innovation tax concessions’ to flow through an interposed trust and facilitating ASIC disclosure of information to the ATO

On 4 April 2017, Treasury Laws Amendment (2017 Measures No 1) Bill 2017 received Royal Assent as Act No 26 of 2017. It amends: The Income Tax Assessment Act 1997 to ensure the National Innovation and Science Agenda measures contained in Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 operate in accordance with their…

Treasury Laws Amendment (2016 Measures No 1) Bill 2016 – amendments to Corporations Act 2001 to ensure that ‘employee share scheme’ documents for ‘start ups’ are not made public

On 4 April 2017, the Treasury Laws Amendment (2016 Measures No 1) Bill 2016 received Royal Assent as Act No 25 of 2017. It amends: The Corporations Act 2001 to: provide that employee share scheme disclosure documents lodged with the Australian Securities and Investments Commission (ASIC) are not made publicly available for certain start-up companies;…

Diverted Profits Tax Bills receive Royal Assent and become Australian Act No. 27 – 40% tax on diverted profits; 30% franking; pay tax to object; 12 months to supply documents in defense; limited rights of appeal

The following Bills aimed at preventing multinationals from shifting profits offshore received Royal Assent on 4 April 2017 and became Act No 27 & 21 of 2017 (respectively). Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017– Act No 27 of 2017. Provides for a diverted profits tax to apply from 1 July 2017 to ensure that significant global…

Treasury Laws Amendment (2017 Enterprise Incentives (No 1) Bill 2017 introduced – adding a ‘similar’ business test for carry forward of tax losses and to allow self-assessed ‘effective life’ depreciation of intangible assets

The Treasury Laws Amendment (2017 Enterprise Incentives No 1) Bill 2017 was introduced into the House of Reps on Thursday 30.3.2017, to amend the tax law to: supplement the same business test with a more flexible similar business test to improves access to losses for companies (and certain trusts) that have changed ownership so as to allow…

Tax Month – April 2017

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – April 2017 Developments – This is a collection of developments in Australian tax law and practice that occurred in April 2017 which aims to be relevant to tax practitioners.[i] Compiled By F John Morgan…