Australian Taxation Office

New or updated materials on ATO website, including:

  • Taxpayer Alert 2015/5: Arrangements involving offshore procurement hubs - the ATO is reviewing arrangements involving the use of offshore entities which source goods (procurement hub) on behalf of Australian resident multi-national enterprises (MNEs), with a focus on the application of the controlled foreign company rules, the transfer pricing rules and Part IVA of the Income Tax Assessment Act 1936.
  • Class ruling issued yesterday: Avoid errors when completing PAYG instalments raised on the calculation statement for your client's company tax return.
  • Reporting PAYG instalments on a company tax return
  • Updated: PS LA Program, as at 7 December 2015, notes that the proposed Practice Statement in relation to the administration of scheme penalties arising from the application of Subdivision 815-A of the Income Tax Assessment Act 1997 for income years starting on or after 1 July 2004 and before 1 July 2012 has been put on hold due to the Federal Court's decision in theChevron case.
  • Updated: Public Rulings Program, as at 8 December 2015, includes the following updates:
    • proposed draft tax ruling in relation to distributions from foreign companies, and determining whether the participation test is satisfied where the distribution is made in respect of the cancellation of the underlying equity interest, due to be released in October 2016
    • proposed draft tax determination regarding whether a weekly payment redemption amount received under section 53 or section 54 of the Return to Work Act 2014(SA) is ordinary income of the worker, due to be released in May 2016
    • proposed draft GST ruling in relation to foreign currency products and the supply of rights for use outside Australia (no proposed release date given)

Superannuation

The Minister for Small Business and Assistant Treasurer Kelly O'Dwyer has announced the release of draft legislation to improve superannuation fund transparency and extend choice of fund arrangements to employees covered by enterprise agreements and workplace determinations from 1 July 2016. Comments in relation to both measures can be made until Wednesday 20 January 2016.

Tax Reform

The Parliamentary Budget Office has released a report, GST: distributional analysis and indicative reform scenarios, which provides an independent analysis of the revenue and distributional impacts of five indicative GST reform scenarios that have been canvassed in public policy discussions.

China-Australia Free Trade Agreement

Minister for Trade and Investment Andrew Robb has announced that the China-Australia Free Trade Agreement will enter into force on 20 December 2015.