The Government on Tue 7.10.2014, released its response to the report of the Parliamentary Joint Committee on Corporations and Financial Services Family Businesses in Australia – different and significant: why they shouldn’t be overlooked. The Committee’s report made 21 recommendations, including several regarding tax matters.
The Committee recommended, among other things, that:
- as part of its current inquiry into Div 7A of the ITAA 1936, the Board of Taxation closely review the evidence gathered through this inquiry about the effect of Div 7A on Australia’s family business sector. RESPONSE: The Government said it has extended the terms of reference and reporting date for the Board of Taxation Review of Div 7A;
- the Government publicly release the Board of Taxation’s report into the operation of Div 7A. RESPONSE: The Government said the Board will report to it by 31 October 2014 and the Government will make a decision about releasing the report at that time;
- Treasury review the evidence gathered through the committee’s inquiry into the family business sector in Australia and consider consulting the stakeholders identified through this inquiry about the sector’s concerns about the effect of Div 83A of the ITAA 1997 on their capacity to engage suitably qualified executives. RESPONSE: The Government agreed.
[LTN 193, 7/10/14]