HIGHLIGHTS TO 14 JULY 2017

ATO documents

GSTD 2017/1: Goods and services tax: when is the supply of a credit card facility GST-free under paragraph (a) of Item 4 in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

TD 96/7: Fringe benefits tax: is fringe benefits tax (FBT) payable on meals and accommodation provided to employees who work at remote construction sites, where the accommodation is not the usual place of residence of the employee? MT 2030: Fringe benefits tax : living-away-from-home allowance benefits

Withdrawn Interpretative Decisions

ATO ID 2004/439: Derivation of income: pre-completion sales contracts

OECD Transfer Pricing Guidelines

The OECD has released the 2017 edition of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Among other things, the update consolidates revisions made to the 2010 edition as a result of the OECD/G20 BEPS project.

OECD Model Tax Convention

The OECD has also released for comment the draft contents of the 2017 update of the OECD Model Tax Convention. Comments are only requested with respect to changes that have not previously been released for comments, as noted on the OECD’s website.

OECD MLI Database tool

Further to the signing of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI) in June 2017, the OECD has released a preliminary (beta) version of a tool which makes projections on how the MLI modifies a specific tax treaty covered by the MLI by matching information from signatories’ MLI positions.

Corporate tax avoidance Senate hearings

The transcripts for the July 2017 Senate Economics References Committee hearings on corporate tax avoidance have been released.

Failure to lodge on time penalties

The ATO has announced that it will generally not impose, or will automatically remit, failure to lodge on time penalties in relation to income tax returns for the 2015-16 income year and certain activity statements, which were/are due to be lodged within the period from December 2016 to the end of August 2017, if they are lodged with the ATO by 31 August 2017.

Progress of legislation

As at 14.7.17

Bill

Treasury Laws Amendment (2017 Measures No. 4) Bill 2017

Description

Income tax relief for transfers within a fund to a MySuper product. Integrity changes to the wine equalisation tax producer rebate rules.

Status

Introduced into House of Reps 22.6.17.

Bill

Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017

Description

Extends the reduction of the corporate tax rate to 25 per cent by 2026/27 to businesses with turnover of more than $50 million.

Status

Introduced into House of Reps 11.5.17.

Bill

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

Description

Similar business test; Effective life assessment on intellectual property.

Status

Introduced into Senate 22.6.17.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package.

Status

Introduced into Senate 23.11.16. Awaiting passage by Senate.