On Wed 12.8.2020, the ATO released a draft updated version of Practical Compliance Guideline PCG 2017/4, with a new draft a Schedule 3: dealing with interest-free loans between related parties.[PCG 2017/4DC2] See below for details. [Tax Month – August 2020]
On Wed 12.8.2020, the ATO issued the following products to provide guidance on applying the arm’s length debt test in the thin capitalisation rules: TR 2020/4 and PCG 2020/7. See below for details. [Tax Month – August 2020]
On 5 August 2020, The AAT has ruled that an approved SMSF auditor should not have been disqualified by ASIC for breaching the auditor independence rules in relation to his family self-managed superannuation fund (SMSF). See below for details. [Tax Month – August 2020]
The taxpayer has appealed to the Federal Court from the decision in Hamilton and FCT [2020] AATA 1812, which upheld the Commissioner’s ruling that the taxpayer’s income from short-term assignments with the International Monetary Fund (IMF) was not exempt from tax under the International Organisations (Privileges and Immunities) Act 1963. The tests in the High Court case…
Treasury has updated (to 10 August) its fact sheet, Extension of the JobKeeper Payment, to incorporate the further revisions to JobKeeper 2.0 announced by the Prime Minister on 7 August 2020. Those changes will adjust the employee eligibility reference date to 1 July 2020 and revise the turnover test. See below for details. [Tax Month – August 2020]
On Fri 14.8.2020, the ATO issued Taxpayer Alert TA 2020/3 expressing concern about arrangements involving interposed offshore entities, to avoid Australian tax on the Australian profits and interest withholding tax liabilities on the off-shore interest payments. See below for details. [Tax Month – August 2020]
On Friday 21.8.2020, The Tax Institute posted a report by their Senior Advocate: Robyn Jacobson entitled A stocktake of unenacted measures in their weekly emailed newsletter: TaxVine (No.32 of 21.8.20). This covers things merely announced (5 items), announced measures introduced as a Bill (10 items), that is still before Parliament and recently enacted measures (6 items). This…
Late on Friday 14 August 2020, the Treasurer registered a legislative instrument which changes the reference date for determining the eligibility of employees under JobKeeper from 1 March 2020 to 1 July 2020. This means that more employees will be eligible for JobKeeper. See below for details. [Tax Month – August 2020]
On 3.8.20, the ATO has issued an update on residency and source of income. It deals with the issue from the perspectives of an Australian resident and a foreign resident in the context of a change of residency due to COVID-19. See below for details. [Tax Month – August 2020]
On Mon 3.8.2020, the ATO released a Draft Legislative Instrument proposing to provide an in-house asset exemption for an asset that is attributable to the deferral of rental income measures implemented to provide financial relief as a result of COVID-19. See below for details. [Tax Month – August 2020]