The ATO has released details of its administrative treatment regarding the Government’s proposed amendments to Pt IVA of the ITAA 1936, contained in the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 which is still before Parliament. The amendments are proposed to apply retrospectively to schemes entered into or carried out on or after 16 November 2012.
For taxpayers who enter into an arrangement in accordance with the existing law, and Pt IVA is subsequently applied as a result of the retrospective law change, the ATO says interest and penalties will be remitted “unless the case especially warrants different treatment”. It says those taxpayers that enter into schemes or arrangements from 16 November 2012 until the date of enactment of the new law will need to review their positions once the legislation is enacted and contact the ATO where necessary.
[LTN 77, 24/4/13]