The Tax Laws Amendment (2012 Measures No 2) Bill 2012 was introduced into the House of Reps on Thur 24.5.2012. It contains the following amendments:
- Directors’ penalty regime – strengthens directors’ obligations to cause their company to comply with its existing PAYG withholding and superannuation guarantee requirements by:
▪ extending the director penalty regime to make directors personally liable for their company’s unpaid superannuation guarantee amounts;
▪ ensuring that directors cannot discharge their director penalties by placing their company into administration or liquidation when PAYG withholding or superannuation guarantee remains unpaid and unreported 3 months after the due date; and
▪ in some instances, making directors and their associates liable to PAYG withholding non-compliance tax where the company has failed to pay amounts withheld to the Commissioner. The PAYG withholding non-compliance tax will be imposed by Pay As You Go Withholding Non-compliance Tax Bill 2012 which was also introduced into the House of Reps on Thur 24.5.2012. DATE OF EFFECT: broadly from Royal Assent.
- Consolidation tax cost setting rules– amends the ITAA 1997 to modify the consolidation tax cost setting and rights to future income rules so that the tax outcomes for consolidated groups are more consistent with the tax outcomes that arise when assets are acquired outside the consolidation regime. DATE OF EFFECT: various depending on acquisition time.
- TOFA consolidation interaction and transitional provisions – amends the TOFA consolidation interaction provisions in the ITAA 1997 and the transitional provisions in the TOFA Act. The amendments aim to ensure that the tax treatment of financial arrangements that are part of a joining/consolidation event is consistent with the TOFA tax timing rules and that the tax treatment of liabilities that are, or are part of, a financial arrangement takes into account changes in the value of the liability other than the repayment of the liability. DATE OF EFFECT: various.
[LTN 99, 24/5]