Category Archives: Tax Month – August 2017

USA signs CbC report exchange Arrangement with Australia – joining 18 others including Belgium, Brazil, Denmark, Guernsey, Ireland, Isle of Man, Netherlands, New Zealand, South Korea, South Africa

The US and Australia signed a bilateral Competent Authority Arrangement on 1 August 2017 to exchange Country-by-Country (CbC) Reports. The arrangement is expected to apply for fiscal years beginning on or after 1 January 2016. As at 3 August 2017, the US has such arrangements with 19 countries including Belgium, Brazil, Denmark, Guernsey, Ireland, Isle of Man, Netherlands, New Zealand, South…

Remission of tax (administrative) penalties – ATO has updated its updated it’s explanatory material

The tax laws authorise the ATO to impose administrative penalties for conduct such as not taking reasonable care in claiming a deduction to which a taxpayer is not entitled or making a false or misleading statement. The ATO says taxpayers dissatisfied with a penalty can generally ask the ATO to reduce or cancel it. The…

Taxation Administration (Remedial Power – Foreign Resident Capital Gains Withholding) Determination 2017 – amending the Foreign Resident CGT withholding regime so vendors get the benefit of withholding credits in the year the CGT is payable – for sales that straddle year end

The Commissioner made the Taxation Administration (Remedial Power – Foreign Resident Capital Gains Withholding) Determination 2017 on 31.7.17 and it was registered on on the Federal Register of Legislative Instruments on Fri 4.8.2017. The Determination was made under the Commissioner’s new power to ‘remedy’ legislation (change it) by legislative instrument. This power was inserted into the law in…

Black Economy Taskforce – Minister releases its Interim Report and Consultation Document containing 54 ideas for further feedback prior to final report due October 2017

On 2.8.2017, the Minister for Revenue announced the release of the following two documents by the ‘Black Economy Taskforce’ (headed by Mr Michael Andrews): Its interim report (see table of contents below). A consultation document containing a list of 54 ideas. These ideas are not recommendations but the product of the Taskforce’s extensive ‘roadshow’ consultation…

Class Rulings 2017/47-51 – Retirement Schemes of Illawarra Coal and EnergyAustralia Yallourn and various rollovers in the merger of Touchcorp and Afterplay

On  Wed 2.8.2017, the ATO issued 5 Class Rulings: CR 2017/47 – South32 Illawarra Coal Holdings Pty Ltd Retirement Scheme 2017. The ATO accepts that the scheme is an early retirement scheme for the purposes of s 83-180 of the ITAA 1997. The ruling applies from 2 August 2017 to 30 April 2018; CR 2017/48 – CGT roll-over: exchange of…

Joint toolkit designed to help developing countries tackle the complexities of taxing offshore indirect transfers of assets – IMF, OECD, UN & World Bank seeking feedback on draft ‘toolkit’

01/08/2017 – The Platform for Collaboration on Tax – the OECD announced a joint initiative of the IMF, OECD, UN and World Bank Group to issue a draft toolkit designed to help developing countries tackle the complexities of taxing offshore indirect transfers of assets, a practice by which some multinational corporations try to minimise their…

Transfer of life insurance business of National Mutual to AMP – ATO guidance on tax implications

The ATO has released guidance for taxpayers who held a life insurance policy with The National Mutual Life Association of Australasia Limited (NMLA) and it was transferred to AMP Life Limited (AMPL) on 1 January 2017 under a Federal Court approved transfer. The ATO says taxpayers do not need to include any amount in my tax return…

Diverted Profits Tax – ATO flags development of a LCG to clarify new concepts; a PSLA on processes leading up to a DPT assessment; safeguards built into the procedure to issue a DPT assessment

The ‘Diverted Profits Tax’ (DPT) legislation received Royal Assent on 4 April 2017, with Schedule 1 to the Treasury Laws Amendment (Combating Multinational Tax Avoidance) Act 2017 implementing the DPT and the Diverted Profits Tax Act 2017 setting the 40% tax on profits. The DPT law applies to DPT tax benefits arising in an income year…

GST – Collection Models for GST on Low Value Imported Goods – Discussion Paper issued by the Productivity Commission reference on this subject, required as a condition of the deferred operation of the new law for vendor (etc.) collection of the GST

The Productivity Commission has released a Discussion Paper on Collection Models for GST on Low Value Imported Goods – to assist with its inquiry on this subject – commissioned by the Treasurer on 30 June 2017. The Commission is to report by 31 October 2017 and it has requested submissions from the public by 30…