The Tax Office has reassured taxpayers that disclosing under Project DO IT will not give them a “red flag”. Project DO IT offers benefits to taxpayers who bring their undeclared offshore income and assets back into Australia’s tax system by 19 December 2014. The ATO said feedback had raised taxpayer concerns that if they disclose they will…
Under Div 7A of the ITAA 1936, certain amounts paid, lent or forgiven by a private company to shareholders or their associates may be treated as being a deemed dividend for tax purposes, subject to some exclusions. However, the Commissioner has a discretion to disregard this outcome if the deemed dividend arises as a result of an honest…
On 31 October 2014, the ATO released ATO ID 2014/32 – Is a term deposit a qualifying forex account? [FJM note: “No”. A term deposit is not a qualifying forex account for the purposes of Division 775 of the ITAA 1997. A ‘qualifying forex account’ means an account that is denominated in a particular foreign currency and…
The ATO on Wed 26.11.2014, released the following Class Rulings: CR 2014/94: FBT: employers of employees who take out a health insurance policy under a Health Link Consultants Employee Health Plan; CR 2014/95: Lend Lease Corporation Limited Capital Reallocation; and CR 2014/96: Multiplex Development and Opportunity Fund – Return of capital. The ATO also issued…
The ATO on Wed 19.11.2014, issued the following Class Rulings: CR 2014/92: Expiry of sub-leases: RQYS Nominees Pty Limited as trustee for the RQYS New Marina Trust; and CR 2014/93: Research and development: membership funding for the Australian Coal Association Research Program. The ATO also issued an Addendum to PR 2008/11 (AIL Almond Grower Project…
The ATO on Wed 12.11.2014, issued the following Class Ruling and Product Ruling: CR 2014/91: Scrip-for-scrip roll-over: acquisition of units in Federation Centres Trust No 2 and Federation Centres Trust No 3 by Federation Centres Trust No 1; and PR 2014/18: AgriWealth 2015 Softwood Timber Project. [LTN 219, 12/11/14]
The ATO on Wed 12.11.2014, released Draft Taxation Determination TD 2014/D19 which states that the “interest” referred to in the phase at the end of s 974-80(2) of the ITAA 1997 is the interest held by the “ultimate recipient” and not the interest held by the “connected entity”. DATE OF EFFECT: When the final Determination is…
The ATO on Wed 12.11.2014, released Draft Taxation Determination TD 2014/D18 which states that the fact that a non-resident entity has decided to invest indirectly in an Australian resident company through one or more interposed entities and the final leg in the chain is a debt interest will not of itself be sufficient to form…
The ATO on Wed 5.11.2014, issued an Addendum to Taxation Ruling TR 2005/7 (The taxation implications of “partnership salary” agreements). It amends the Ruling to include the taxation consequences of a partner’s salary where the partnership is a corporate limited partnership. As a consequence, the ATO has also withdrawn ATO ID 2002/564 (Partner Salary in…
The ATO on Wed 12.11.2014, issued Taxation Ruling TR 2014/6, which provides the Commissioner’s views on the application of s 815-130 of the ITAA 1997 regarding the relevance of actual commercial or financial relations to the identification of conditions relevant to ascertaining whether an entity gets a transfer pricing benefit from the actual conditions, which operate…