Australian Taxation Office
New or updated materials on ATO website, including:
- Rulings to be released on Wednesday including:
- final tax ruling on income tax matters relating to strata title bodies constituted under strata title legislation (previously issued as TR 2015/D1)
- final tax ruling on the CGT small business concessions, unpaid present entitlements and the maximum net asset value test (previously issued as TR 2015/D2)
- final tax determination on whether a release by a private company of its unpaid present entitlement is a "payment" within the meaning of Division 7A of Part III of the ITAA 1936 (previously issued as TD 2015/D4)
- Electronic commerce interface (ECI) service change - June 2016
Multinational Anti-Avoidance Law
The ATO has released a Law Companion Guideline for schemes that limit a taxable presence in Australia and as such may be subject to proposed section 177DA of the ITAA 1936. The Law Companion Guideline is a new product developed by the ATO in consultation with industry, and describes how the ATO will apply the law in Schedule 2 to the Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015 when it comes into effect. According to the Guideline, if Schedule 2 to the Bill is enacted without amendment, the Guideline will be a public ruling when the Bill comes into effect. The Guideline discusses the conditions that must be satisfied for the law to apply, including the principal purpose test, and provides examples of high and low risk scenarios and questions for entities to consider in assessing the application of the proposed law to their arrangements.
Board of Taxation paper on hybrids
The Board of Taxation has released a consultation paper on the implementation of anti-hybrid rules developed by the OECD. The consultation paper has been developed to facilitate the public consultation process on issues associated with the implementation of anti-hybrid rules, and does not contain any options nor does it express the Board's preliminary views as to how the Government should proceed with these rules. Submissions can be made until 15 January 2016.