Independent review of ATO audit position to be available to the ‘small end of town’ too – ATO announces small business pilot for income tax disputes in South Australia and Victoria

On 29 June 2018, the ATO announced that it will be running a 12-month pilot (from 1 July 2018) to extend its independent review service to certain small business taxpayers. An independent review is where an independent technical officer from outside the ATO’s audit area reviews the merits of the ATO’s audit position before the assessment…

Australia joins new ‘J5’ Enforcement Group to fight global tax and other crime – with Canada, the US, UK and Netherlands

On 4 July 2018, Ministers O’Dwyer and Taylor jointly announced that representatives from the Australian Taxation Office (ATO) and Australian Criminal Intelligence Commission (ACIC) were in Montreal the previous week, to sign up to the Joint Chiefs of Global Tax Enforcement alliance (known as the J5). As well as Australia, membership of the J5 includes…

CR 2018/30 & CR 2018/31 – restructure of IFM Infrastructure Funds; Westfield sale of Unibail-Rodamco stapled securities

On Wednesday 4 July 2018, the ATO issued the following two Class Rulings: CR 2018/30 – IFM Infrastructure Funds: restructure. This ruling considers the CGT consequences of the issue of units under a restructure arrangement. Date of effect: 1 July 2018 to 30 June 2019; and CR 2018/31 – Sale of Westfield Group stapled securities to Unibail-Rodamco SE: CGT…

TD 2018/12 – Scope of MAAL: when related party ‘activities’ are “directly in connection with” the foreign entity ‘supply’ (viz: ‘permanent establishment’ avoidance)

On Wednesday 4.7.2018, the ATO issued Taxation Determination TD 2018/12 on the meaning of “directly in connection with” in s 177DA(1)(a)(ii) of the ITAA 1936, which is part of the Multinational Anti-Avoidance Law (MAAL) for significant global entities, in s177DA. This Determination finalises TD 2018/D1 and contains the same views as the draft. The phrase ruled on,…

TR 2018/D1 – draft ruling on the meaning of the phrase “in Australia” requirements for the Div 30 ‘Deductible Gift Recipients (DGR); Div 50 ‘tax exemption’ provisions for charities etc. and Div 207 Franking Credit refunds

On Wed 4.7.2018, the ATO issued Draft Taxation Ruling TR 2018/D1 setting out the Commissioner’s view on the meaning of the “in Australia” condition for Div 30 DGR status and Div 50 income tax exemption of charities and non-profits. He seeks comments by This is a fraught area, as the ‘in Australia’ requirement was obviously meant…

ASX Corporate Governance Council’s Principles and Recommendations – consultation on whether an entity’s board must consider the views and interests of other stakeholders, such as customers, suppliers, consumers, tax payers and others

Article appearing in the 4/7/18 KPMG ‘Daily Tax News’ Amongst the changing governance landscape with respect to directors’ duties and liabilities, it is important to remember that the general duties of directors are owed to the company for which they are a director. The Australian Securities Exchange (ASX) consultation process currently underway to update the…

Tax Related Bills still outstanding – including: $20k ‘write-off’; corporate tax cuts; Hybrid Mismatch Rules; Multi-Lateral Instrument; Black Economy Bill; and non-resident ‘main residence’ abolition

The last Parliamentary Winter sittings were held in the last week of June 2018, and there are quite a few significant tax bills still before Parliament that are on hold until Parliament resumes again on 13 August. Corporate Tax Cuts – the remaining ‘tranche’: The most significant is the bill related to company tax rate…

Allocation of Profits in Professional Firms – ATO advice to Working Group as of 28 June 2018 – definition of ‘professsionals’ (gateway) – factors in achieving structure neutral guidance focussing on economic outcomes

ATO advice to Professional Firms Working Group as of 28 June 2018 Thank you for your continued input and participation as a member of the Professional Firms Working Group. Your suggestions continue to provide valuable insights which provide a richer understanding of the issues and have assisted in enabling us to progress the review of…

Tas Payroll Tax & Duty: new Act reduces payroll tax rate to 4%, imposes additional 3% point duty surcharge on foreigners, and gives a 50% duty concession to certain first home buyers and ‘downsizers’

The Taxation Related Legislation (Housing Availability and Payroll Relief) Bill 2018 received Assent on 29 June 2018 as Act No 5 of 2018. It had passed the Parliament with 2 amendments from the Legislative Council concerning the removal of the reference to “greater Hobart area” and its definition from the new section 19E of the Land Tax…