Consultation paper – Stapled structures

Treasury released a consultation paper on 24 March 2017 seeking submissions in relation to stapled structures. Submissions are due by 20 April 2017. Refer to our Riposte here for further details.

ATO documents

Addenda - Taxation Determinations

TD 93/146: Income tax: should a resident deduct withholding tax from interest payable under a loan from a non-resident if there is no actual payment of the interest?

TR 92/4: Income tax: whether losses on isolated transactions are deductible

TR 2003/13: Income tax: eligible termination payments (ETP): payments made in consequence of the termination of any employment: meaning of the phrase 'in consequence of'

TR 2004/4: Income tax: deductions for interest incurred prior to the commencement of, or following the cessation of, relevant income earning activities

TR 2005/12: Income tax: deductibility of interest expenses incurred by trustees on funds borrowed in connection with the payment of distributions to beneficiaries

TR 2005/16: Income tax: Pay As You Go - withholding from payments to employees

Notices of Withdrawal - Interpretative Decisions

ATO ID 2001/226: Residency: Australian Defence Force member residing overseas and engaged in discharge of government functions

ATO ID 2001/30: Deductions and expenses: Rental Property (Repair of Foundations)

ATO ID 2001/401: Residency: Senior Government Officials residing overseas and engaged in discharge of government functions

ATO ID 2001/478: Borrowing expenses - on purchase of vacant land and the construction of a house for future income producing purposes

ATO ID 2001/729: CGT - deceased estate - cost base of CGT asset - legal costs incurred in confirming validity of the will

ATO ID 2001/730: CGT - deceased estate - cost base of CGT asset - legal costs to determine control of the estate

ATO ID 2002/1026: Landlord - Costs associated with relocating tenants

ATO ID 2002/1027: Landlord - Cost of defective building works report

ATO ID 2002/1096: Letting fees incurred prior to property being available for rent

ATO ID 2002/291: Rental Repairs - repair to substantial part of entirety

ATO ID 2002/292: Rental repairs - replacement of an entirety

ATO ID 2002/306: Dependant Spouse Tax Offset - spouse living overseas

ATO ID 2002/330: Rental property repairs - replacing worn carpet by polishing existing floorboards

ATO ID 2002/573: Deductibility of rental property expenses - electricity power guarantee

ATO ID 2002/576: Dependant Tax Offset - spouse in prison

ATO ID 2002/589: Borrowing expenses - costs of maintaining non-income producing property used as collateral for a loan

ATO ID 2002/929: Rental Expenses - cost of relocating assets to a rental property

ATO ID 2003/113: Rental Property Expenses - bank guarantee in lieu of deposit - deductibility of fees

ATO ID 2003/772: Capital gains tax: cost base - non income producing property - travel expenses - third element of cost base

ATO ID 2004/338: Spouse Tax Offset: separated spouse in receipt of family tax benefit

ATO ID 2004/666: Withholding tax obligation: payment to religious practitioners performing marriage services

ATO ID 2004/932: Capital Works: calculation of deduction - number of days used - leap year

ATO ID 2005/39: Capital Gains Tax: cost base - Finnish gift tax

ATO ID 2005/40: Capital Gains Tax: cost base - UK inheritance tax

ATO ID 2006/215: Capital Allowances: low-value assets allocated to low-value pools

ATO ID 2007/117: Capital Allowances: stop holding depreciating assets allocated to a low value pool

ATO ID 2007/67: Capital gains tax: third element of cost base - travel and accommodation costs relating to initial repairs

ATO ID 2009/150: PAYG withholding: meaning of managed investment trust

ATO ID 2011/50: Residency: employee of a public sector organisation working permanently in Singapore

Law Companion Guidelines

LCG 2016/12: Superannuation reform: total superannuation balance

Draft GST Legislative Determinations

The ATO has released more draft GST determinations, which will replace and repeal existing determinations. A full list of the draft determinations can be found here.

Tax cases

Tech Mahindra Limited v Commissioner of Taxation: The High Court has refused the taxpayer’s application for special leave to appeal against the decision of the Full Federal Court in Tech Mahindra Limited v Commissioner of Taxation [2016] FCAFC 130 (22 September 2016). The Full Federal Court had held that a company resident in India, which provided IT services to Australian clients from both a permanent establishment in Australia and from India, was liable to tax in respect of some of the income derived from the services provided in India.

Progress of legislation

The Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017 and Diverted Profits Tax Bill 2017 passed the House of Reps on 21 March 2017 and were introduced into the Senate on 23 March 2017. While the Diverted Profits Tax Bill 2017 passed the House of Reps without amendment, the Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017 was amended to clarify the rules dealing with the interaction between the CFC provisions and the DPT.

As at 24.03.17

Bill

Treasury Laws Amendment (2017 Measures No. 1) Bill 2017

Description

Innovation Measures – ESVCLP rules; ASIC

Status

Introduced into Senate 20.3.17

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

Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017

Description

Diverted profits tax; Multinational tax avoidance; Transfer pricing

Status

Introduced into Senate 23.3.17

Bill

Diverted Profits Tax Bill 2017

Description

Diverted profits tax

Status

Introduced into Senate 23.3.17

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package

Status

Introduced into Senate 23.11.16. Awaiting passage by Senate.

Bill

Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016

Description

Remedial power for the Commissioner; Income tax averaging rules for farmers; luxury car tax; minor amendments correcting technical or drafting defects.

Status

Assent on 28.2.2017 as Tax and Superannuation Laws Amendment (2016 Measures No 2) Act 2017, Act No 15 of 2017

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 to 25 per cent by 2026/27. Increases the unincorporated tax discount for small business. Increases turnover thresholds.

Status

Introduced into House of Reps 1.9.16