ATO documents

Class Rulings

CR 2017/23: Income tax: Department of Health (Commonwealth) - Direct Funding Model of the Individual Support Packages sub-Programme of the Commonwealth Continuity of Support Programme CR 2017/24: Income tax: PRP Investment Trust: redemption of units CR 2017/25: Income tax: Challenger Limited: Challenger Capital Notes 2

Tax cases

Thomas v Commissioner of Taxation [2017] FCAFC 57 (12 April 2017): The Full Federal Court unanimously allowed the taxpayers’ appeals and held that they were entitled to franking credits allocated differently from the net income of a trust.

Other News

ATO administrative treatment of franked distributions funded by capital raisings

The ATO has updated its website in relation to the proposed measure to prevent a company from attaching franking credits to distributions funded by capital raisings, as announced in the 2016-17 MYEFO, which is expected to apply retrospectively from 19 December 2016 when enacted. The ATO encourages taxpayers who have entered into, or are contemplating entering into, an arrangement of the type outlined in Taxpayer Alert TA 2015/2 or which might be within scope of the announced measure to contact the ATO.

OECD releases further guidance on CbC reporting

The OECD has released additional guidance to tax administrators and multinational groups on the implementation of Country-by-Country (CbC) reporting (BEPS Action 13). Five specific issues are addressed in this guidance: the definition of revenues; the accounting principles/standards for determining the existence of and membership in a group; the definition of total consolidated group revenue; the treatment of major shareholdings; and the definition of related party for purposes of completing Table 1 of the CbC report.

Progress of legislation

As at 14.04.17

Bill

Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017

Description

Similar business test; Effective life assessment on intellectual property

Status

Introduced into House of Reps 30.3.17.

Bill

Treasury Laws Amendment (GST Low Value Goods) Bill 2017

Description

GST imposed on low cost imported goods

Status

Introduced into House of Reps 16.2.17.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package

Status

Introduced into Senate 23.11.16. Awaiting passage by Senate.

Bill

Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016

Description

Immediately reduces the tax rate for businesses with turnover of up to $10 million. Reduces the company tax rate for all businesses with an aggregated turnover of less than $50m to 25 per cent by 2026/27. Increases the unincorporated tax discount for small business.

Status

Passed Senate with amendments 31.3.17. Awaiting reintroduction into the House of Reps.