Australian Taxation Office

New or updated materials on ATO website

  • ATO warning on franked distributions funded by capital raisings: The ATO has warned it is considering its position on recent transactions involving franked distributions which are funded by equity raisings, and will issue a Taxpayer Alert shortly
  • Rulings to be released on Wednesday, including a final tax determination on the application of s974-80(1)(d) of the Income Tax Assessment Act 1997 where a company has issued a debt interest to a listed property trust within the same stapled property group (previously issued asTD 2014/D20)
  • New and withdrawn ATO Interpretative Decisions (ATO IDs):

Cases

The High Court has granted the Commissioner special leave to appeal against the decision of the Full Federal Court in the Australian Buildings System case. In this case, the Full Federal Court previously found for the taxpayer concerning a liquidator's obligation to retain an amount from proceeds of the sale of assets where a notice of tax assessment has not issued. The transcript of the High Court special leave hearing is available.

GST, Luxury Case Tax and Wine Tax

A New Tax System (GST, Luxury Car Tax and Wine Tax) Direction 2015, registered on Friday, maintains existing arrangements to support the notional application of certain taxes to the Commonwealth and ensures continuity of GST arrangements for Commonwealth entities. It replaces the Finance Minister’s (A New Tax System) Directions 2005. The only changes are administrative in nature and update references to Commonwealth entities to ensure alignment with the Public Governance, Performance and Accountability Act 2013.

UK and Australia to collaborate on multinational tax

Yesterday, the Treasurer and his UK counterpart, the UK Chancellor of the Exchequer, announcedthe establishment of a joint working group to further consider and develop initiatives in relation to multinationals diverting profits. In an interview following the announcement, the Treasurer stated that, when asked if Australia would mirror the UK legislation, "Australia does not need to impose a new tax, but certainly there are ways that we can beef up the integrity measures around our own taxation system".

Council of Australian Governments

The 39th meeting of the Council of Australian Governments (COAG) was held on Friday. In itscommunique, the leaders acknowledged the ongoing work on the Tax Reform and Federation White Papers, and noted that the GST distribution will be considered in the Federation White Paper, and that the Commonwealth was prepared to consider requests for possible reforms to the Commonwealth Grant Commission process