The Commissioner has issued a ‘Discussion Paper’ to assist in drawing a second draft of TR 2014/D1 Income tax: employee remuneration trusts was published on 5 March 2014. Comments are sought be 12 February 2016.
This draft sought to explain, in a preliminary way, the Commissioner’s views on the taxation consequences for employers, trustees and employees, who participate in employee remuneration trust arrangements (ERT) that are established by an employer as a means of delivering benefits to employees via a trust. Draft Ruling TR 2014/D1 intended to clarify ambiguous or grey areas of the law primarily for taxpayers operating outside of the specific legislative scheme for Employee Share Schemes and the new draft is intended to do the same. Comments on the first draft (TR 2014/D1) have been considered and form an important impetus for this Discussion Paper.
[ATO Discussion Paper – see ‘Tax Technical’ website for link]