ATO Documents

Draft Taxation Determination TD 2019/D10   Income tax: can capital gains be included under subparagraph 770-75(4)(a)(ii) of the Income Tax Assessment Act 1997 when calculating the foreign income tax offset limit?

Class Rulings CR 2019/62 Placard Pty Ltd - early retirement scheme 2019 CR 2019/63 Ruralco Holdings Limited - Exempt Employee Share Plan shares disposed of under scheme of arrangement CR 2019/64 Ruralco Holdings Limited - Scheme of Arrangement and payment of Special Dividend CR 2019/65 Fleetcare Pty Ltd telematics product - use for FBT car logbook and odometer records CR 2019/66 Entwined Signage Pty Ltd in-Vehicle Monitoring System - use for car logbook and odometer records

Draft Law Companion Ruling LCR 2019/D3 Non-arm's length income - expenditure incurred under a non-arm's length arrangement. This draft ruling deals with expenditure incurred by a trustee of a complying superannuation entity.

Draft Practical Compliance Guideline PCG 2019/D6 Compliance approach for complying superannuation funds in respect of applying the non-arm's length income provisions to 'non-arm's length expenditure'

Tax Cases

Stockton v FCT [2019] FCA 1679

The Federal Court has held that a US citizen on a working holiday in Australia for more than half of an income year was not an Australian resident for Australian tax purposes. 

Other news

OECD releases proposal for Unified Approach under Pillar One

On 9 October, the OECD released a consultation document setting out its proposal (labelled the 'Unified Approach') to deal with Pillar One in the work on tax issues arising from digitalisation of the economy. The document proposes significant changes to the international tax regime include a new nexus for taxation for businesses within scope, not dependent on physical presence but largely based on sales. Further, the document proposes a new profit allocation rule applicable to taxpayers within the scope, which complements the current transfer pricing rules based on the arm’s length principle with formula based solutions. For further details, refer to our Riposte here.

Progress of legislation

As at 11.10.19

Parliament resumed on 14 October 2019.

Bill

Treasury Laws Amendment (2019 Measures No 2) Bill 2019

Description  

Extends the genuine redundancy age limit to pension age, provides for interest to be paid on super payments made by ATO and provides a full luxury car tax refund (up to $10,000) for eligible primary producers and tourism operators.

Status

Introduced into the House of Reps 18.09.19

Bill

Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019

Description

Reintroduces measures in lapsed Bill to provide a one off amnesty for employers not meeting their superannuation obligations.

Status

Introduced in the House of Reps 18.09.19

Bill

Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019

Description

Prevent small business CGT concessions from being available for partner assignments; extend anti-avoidance rule for closely held trusts to include family trusts that undertake circular trust distributions; deny deductions relating to holding vacant land; ATO disclosure of business tax debts to credit reporting bureaus; prevent salary sacrifice from reducing SG contributions; electronic invoicing implementation; TOFA amendments

Status

Introduced into the Senate 01.08.19.

Bill

Treasury Laws Amendment (2018 Superannuation Measures No 1) Bill 2019

Description

Reintroduces lapsed Bill containing superannuation measures. 

Status

Received Royal Assent 02.10.19. Act No 78 of 2019

Bill

Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019

Description

Reintroduces lapsed Bill to prohibit creditor-defeating dispositions of company property; improve accountability of resigning directors; allow Commissioner to collect estimates of anticipated GST liabilities; make company directors personally liable for GST; authorise Commissioner to retain tax refunds.

Status

Introduced into the House of Reps 04.07.19.

Bill

Treasury Laws Amendment (2018 Measures No. 2) Bill 2019

Description

Reintroduces measures in lapsed Bill to establish the foundation for the Government's new Fintech framework. Makes a number of technical amendments to the Early Stage Venture Capital Limited Partnership, Venture Capital Limited Partnership and Tax Incentives for Early Stage Investor regimes.

Status

 Introduced in the House of Reps 04.07.19.