Category Archives: Tax Month – May 2016

External scrutiny of ATO – Committee tables its report: no big changes but better coordination needed between supervising authorities and ATO-IGoT improve communication

On 5 May 2016, the House of Representatives Standing Committee on Tax and Revenue tabled its report on the external scrutiny of the ATO in the House of Representatives. The terms of reference asked the Committee to consider in detail the issues of duplication and overlap, cost to government, and differential regulation. After considering these issue, the…

Private Ancillary Fund and Public Ancillary Fund Guidelines amended for ACNC, to reduce ‘red tape’, investment strategy to consider charity status and conflicts of interest and allow Ancillary funds to provide loan guarantees to donee DGRs

The Private Ancillary Fund and Public Ancillary Fund Amendment Guidelines 2016 were registered on Wed 4.5.2016. It amends the Private Ancillary Fund Guidelines 2009 and the Public Ancillary Fund Guidelines 2011 to, among other things: update the Private Ancillary Fund Guidelines 2009 to reflect improvements incorporated in the later made Public Ancillary Fund Guidelines 2011; introduce portability into the Private Ancillary Fund Guidelines 2009; update…

Treasury modelling for 2016-17 Budget measures released – Effects of company rate tax cut; economy wide GDP uplift of 1% from budget measures; consultation on WET integrity measures and ‘portfolio’ budget statements (ATO, IGoT etc.)

COMPANY TAX CUT: In the 2016-17 Federal Budget, the Government announced that it would reduce the company tax rate to 25% over 10 years. The reduction will be phased in, depending on the company’s size (ie it’s aggregated annual turnover). Small businesses will benefit sooner. The phase-in for all companies will be completed in the…

Exemption to new ATO third party reporting obligations – FCT’s legislative instrument excludes reports of changes in shareholders/unitholders in listed entities not covered by ASIC integrity reporting and for certain small trusts under $5m in total assets

On Thursday 5.5.2016 the Commissioner registered the Excluded Classes of Transactions and Entities for Third Party Reports on Shares and Units Determination 2016. The Legislative Instrument exempts classes of transactions from having to be reported to the Commissioner, and to exempt certain entities from having to prepare and lodge reports under the new s396-55 Subdiv 396-B – Information…

NDIS supplies made GST-free supplies under 2013 Ministerial Determination extended 12 months to 30 June 2017 to enable a full review

The GST-free Supply (National Disability Insurance Scheme Supports) Amendment Determination 2016 (No 1) was registered on 2 May 2016 and commenced 1 day later on 3 May 2016. It extends the operation of the determination 12 months. The original (2013) Determination was made by the Disability Services Minister under s38-38(1)(d) of the GST Act and and specifies 22 kinds of…

Bywater Investments Limited (Hua Wang Bank Berhad) v Commissioner of Taxation – HC grants leave to appeal residency decision

The High Court has granted the taxpayers special leave to appeal against the Full Federal Court decision in Bywater Investments Ltd & Ors v FCT [2015] FCAFC 176. The Full Federal Court had dismissed the taxpayers’ appeals from 2 Federal Court decisions that had held the taxpayers were residents of Australia for tax purposes and were liable to pay…

New FIRB ‘taxation conditions’ – comply with taxation laws; provide documents etc.; pay tax; annual report on compliance and extra tax risk conditions

The Foreign Investment Review Board (FIRB) says the 2016-17 Federal Budget makes important protections to the integrity of Australia’s tax base, designed to ensure that all individuals and businesses pay the right amount of tax. Following the Treasurer’s 22 February 2016 announcement that standard tax conditions would be applied to foreign investment approvals, there have been consultations…

Report on implementing OECD’s BEPS Action 2 to eliminate hybrid mismatch arrangements – report released with announcement to legislate

In the 2016-17 Federal Budget (on 3.5.16), the Government announced that it would implement the OECD’s rules in BEPS Action 2 to eliminate hybrid mismatch arrangements, taking into account the recommendations made by the Board of Taxation in its report on the Australian implementation of the OECD hybrid mismatch rules. The report was announced on…

Voluntary ‘Tax Transparency Code (TTC) – Board recommendations for Large companies (over $500m turnover) and Medium companies (over $100m turnover) – report released

The Government released the Board of Taxation’s final report on a voluntary tax transparency code (TTC) on 3 May 2016. On 11 December 2015, the Board released a consultation paper. The Board completed its development of a tax transparency code and provided its report to Government on 16 February 2016. The code is designed to encourage greater public disclosure of tax…

Diverted profits tax consultation paper – design features set out

The Government will introduce a Diverted Profits Tax (DPT) aimed at multinationals that artificially divert profits from Australia. It will apply from 1 July 2017 and will impose a tax at 40% of the diverted profits. The DPT will target businesses that shift profits offshore through arrangements that result in less than 80 per cent…