The Assistant Treasurer Tue 15.5.2012, announced the establishment of an independent Pt IVA expert roundtable to assist with the implementation of the Government’s “clarifications” of the definition of “tax benefit” in Pt IVA of the ITAA 1936. Members of the roundtable include tax and accounting body representatives, tax barristers and academics. Treasury will chair the roundtable. Specifically, the Government has asked the roundtable to provide views on:
- design options for clarifying the operation of Pt IVA to overcome the technical deficiencies with the meaning of “tax benefit” that have been exposed by recent decisions of the Federal Court;
- the terms of draft legislation prepared for public consultation; and
- possible implementation issues.
Mr Bradbury said the Government is aware that some taxpayers and their advisers have expressed concern about the intended scope of the proposed amendments announced on 1 March 2012. He said the Government has clarified on Tue 15.5.2012, that it does not propose to change the core operation of the “purpose” test in Pt IVA; rather, the changes will be targeted on the definition of “tax benefit”.
Source: Assistant Treasurer’s media release, 15 May 2012
[LTN 92, 15/5]