ATO documents

Draft Taxation Determinations 

TD 2016/D4: Income tax: does the residency assumption in subsection 95(1) of the Income Tax Assessment Act 1936 (ITAA 1936) apply for the purpose of section 855-10 of the Income Tax Assessment Act 1997 (ITAA 1997), which disregards certain capital gains of a trust which is a foreign trust for CGT purposes? TD 2016/D5: Income tax: where an amount included in a beneficiary's assessable income under subsection 99B(1) of the Income Tax Assessment Act 1936 (ITAA 1936) had its origins in a capital gain from non-taxable Australian property of a foreign trust, can the beneficiary offset capital losses or a carry-forward net capital loss ('capital loss offset') or access the CGT discount in relation to the amount?

Refer to our Riposte here for our analysis of these draft taxation determinations.

Other News 

Diverted profits tax draft legislation released

On 29 November, the Government released draft legislation on its proposed Diverted Profits Tax (DPT). This follows the consultation paper released in May 2016 which outlined the key design features of the DPT. Comments on the draft legislation are due by 23 December 2016. Refer to our Riposte here for further details of the proposed DPT.

FIRB releases guidance note on tax conditions for foreign investments

On 24 November, the Foreign Investment Review Board (FIRB) released its Guidance Note No 47 on tax conditions for foreign investment approvals. The Guidance Note provides additional information on the revised conditions released by the Treasurer in May 2016 (as outlined in our Riposte here).

OECD releases full text of the Multilateral Convention

The OECD has released the full text and explanatory statement to the Multilateral Convention to implement tax treaty related measures of the BEPS project. The Convention will operate alongside the more than 2,000 existing tax treaties and modify their application in order to implement the BEPS measures. The signing ceremony will be held in June 2017.

Progress of legislation

As at 2.12.16

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