ATO documents

Practical Compliance Guideline

PCG 2017/8: Income tax - the use of internal derivatives by multinational banks

Notices of Withdrawal

ATO ID 2003/751: Deductible gift recipient: meaning of 'the Commonwealth' ATO ID 2008/19: Entrepreneurs' tax offset and personal services income: company ATO ID 2008/22: Entrepreneurs' tax offset and personal services income: partnership

Legislative Instrument

Taxation Administration Act Withholding Schedules 2017

Voluntary Tax Transparency Code – AASB Guidance

The AASB has issued draft guidance to assist businesses in presenting income tax disclosures under the Tax Transparency Code. The guidance will be an Appendix to the Code.

OECD guidance on hard to value intangibles

The OECD has released draft guidance on the implementation of the approach to pricing transfers of hard-to-value intangibles described in Chapter VI of the Transfer Pricing Guidelines.

Tax cases

Chevron Australia Holdings Pty Ltd v Commissioner of Taxation [2017] FCAFC 62 (21 April 2017): The taxpayer has applied for special leave to appeal to the High Court against the decision of the Full Federal Court. See our Tax Brief for a more detailed examination of the complexities of this case.

Hart v Commissioner of Taxation (No 4) [2017] FCA 572 (26 May 2017): The Federal Court has held that a portion of the net income of a law firm practice unit trust was properly included in the taxpayer’s assessable income under s.97, or s.101, or alternatively by way of application of Part IVA. The Federal Court also held that a portion of the income earned by a group of trusts from tax planning and tax scheme services with which the taxpayer was involved, was properly included in the taxpayer’s assessable income by way of application of Part IVA.

David Lynton as trustee for the David Lynton Superannuation Fund (Taxation) [2017] AATA 694 (17 May 2017): The AAT has upheld the Commissioner’s objection decisions that s.177EA applied to the SMSF’s dividend washing share trading activities on the ASX.

Progress of legislation

As at 26.5.17

Bill

Treasury Laws Amendment (2017 Measures No. 2) Bill 2017

Description

Various superannuation amendments, including in relation to the transfer balance cap, concessional and non-concessional contributions, limited recourse borrowing arrangements, transition to retirement income streams and CGT relief for superannuation funds.

Status

Introduced into House of Reps 25.5.17.

Bill

Treasury Laws Amendment (Accelerated Depreciation For Small Business Entities) Bill 2017

Description

Extends by 12 months to 30 June 2018 the period during which small business entities can access expanded accelerated depreciation rules.

Status

Introduced into House of Reps 25.5.17.

Bill

Treasury Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2017

Description

Increases the Medicare levy and Medicare levy surcharge low-income threshold.

Status

Introduced into House of Reps 24.5.17.

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 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 corporate 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

Received Royal Assent on 19.5.17 as Act No. 41 of 2017.