Greenwoods & Freehills Weekly Tax Highlights 25.5.12
ATO documents
Draft Taxation Ruling
TR 2012/D4: Income tax: the identification of 'employer' for the purposes of the short-term visit exception under the Income from Employment Article, or its equivalent, of Australia's tax treaties
Draft Taxation Determination
TD 2012/9: Fringe benefits tax: for the purposes of section 39A of the Fringe Benefits Tax Assessment Act 1986, what is the car parking threshold for the fringe benefits tax year commencing on 1 April 2012
Class Rulings
CR 2012/33: Income tax: scrip for scrip: Restructure of Astron Limited
Product Ruling
PR 2012/20: Income tax: tax consequences of investing in ANZ Tailored Share Facility
Self Managed Superannuation Funds Ruling
SMSFR 2012/1: Self Managed Superannuation Funds: limited recourse borrowing arrangements - application of key concepts
Notice of Withdrawal
TR 2003/11: Income tax: the interpretation of the general exclusion provision of the Dependent Personal Services Article, or its equivalent, of Australia's Double Tax Agreements
Addenda
PR 2011/19: Income tax: deductibility of interest in relation to investment in units in the Macquarie Flexi 100 Trust issued on or before 30 June 2014 - limited recourse borrowings
Interpretative Decisions
ATO ID 2012/45: Employee Share Scheme: value of right where exercise price of right can not be determined
ATO ID 2012/46: Capital Gains Tax: cost base: fourth element of cost base
ATO ID 2012/47: Complying Superannuation Fund: roll-over superannuation benefit treated as assessable income when applying deduction provisions - meaning of contribution
ATO ID 2012/48: Superannuation lump sum paid from a foreign superannuation fund to an Australian resident where an annuity may be paid subsequently: applying section 305-75 of the ITAA 1997
ATO ID 2012/49: Superannuation lump sum paid from a foreign superannuation fund to an Australian resident at the same time as an annuity commenced: applying section 305-75 of the ITAA 1997
Withdrawn Interpretative Decisions
ATO ID 2001/634: GST and deferred management fees in leasehold retirement villages
ATO ID 2001/665: Capital Gains tax: Cost base: fourth element of cost base
Review of permanent establishment attribution rules
Following the release by Treasury of the Consultation Paper 'Income tax: cross border profit allocation - Review of transfer pricing rules' on 1 November 2011, the Assistant Treasurer announced on 24 May 2012 that the Board of Taxation will investigate the impacts of Australia adopting the new OECD authorised approach in relation to the attribution of profits to permanent establishments that was approved by the OECD in July 2010.
ATO Interview - 2012 Changes to Trusts
The ATO has published on its website the transcript of an interview with a senior ATO tax counsel regarding trusts. The interview covers a range of matters, including the ATO’s view on the tax treatment of trusts and certain compliance changes for the 2011-12 income year.
Consolidation amendments - ATO administrative treatment
The government has introduced legislation to amend certain aspects of the tax consolidation rules (refer ‘Progress of legislation’ below). The ATO has outlined its administrative treatment in relation to the lodgement of tax returns and the treatment of penalties for entities affected by the proposed changes in the interim period before the legislation is enacted.
Progress of legislation
A number of Bills were introduced during the week's Parliamentary sittings. The Bills include the following:
- Tax Laws Amendment (2012 Measures No.2) Bill 2012 and related bills which deal with, amongst others: consolidation and TOFA; consolidation and rights to future income; and the MIT withholding tax rate.
- Tax Laws Amendment (Cross-Border Profit Transfer Pricing) (No. 1) Bill. The Bill is intended to confirm that the transfer pricing rules contained in Australia's tax treaties and incorporated into domestic law are able to be applied and provide assessment authority in treaty cases. The Bill is also intended to clarify the interaction between the transfer pricing rules and the thin capitalisation rules.
As at 25.5.12 Bill Explanatory Memorandum Intro House Passed House Intro Senate Passed Senate Date of Royal assent / Act Number Description Superannuation Guarantee (Administration) Amendment Bill 2011 2.11.11 Superannuation Guarantee Rate 23.11.11 CGT Provisions, GST, DGR list and Technical Corrections 16.2.12 MySuper reforms 1.3.12 Discretion to delay refunds, GST, Superannuation 29.2.12 Indirect taxation, GST, Superannuation 21.3.12 Disallows deductions against government assistance payments; CGT; Floods; Dependent Tax offsets; 22.3.12 Shipping Reforms 22.3.12 Shipping Reforms 24.5.12 PAYG withholding and superannuation guarantee obligations; Consolidation and TOFA; Consolidation - Rights to future income; MIT withholding tax rate 24.5.12 Cognate Bill 24.5.12 Cognate Bill 24.5.12 Marginal tax rate; non-resident workers; excise on blended fuels; low income tax offset for the unearned income of minors; ETPs. 25.5.12 Cognate Bill 25.5.12 Cognate Bill 25.5.12 Transfer pricing rules 25.5.12 Shipping Reforms
22.11.11
7.2.12
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14.2.12
27.2.12.
1.3.12
21.3.12 /12
Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012
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Tax and Superannuation Laws Amendment (2012 Measures No. 1) Bill 2012
22.5.12
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Indirect Tax Laws Amendment (Assessment) Bill 2012
13.3.12
14.3.12
21.3.12
15.4.12/39
Tax Laws Amendment 2012 Measures No.1 Bill 2012
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Tax Laws Amendment (Shipping Reforms) Bill 2012
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Shipping Reform (Tax Incentives) Bill 2012
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Tax Laws Amendment (2012 Measures No. 2) Bill 2012
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Income Tax (Managed Investment Trust Withholding Tax) Amendment Bill 2012
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PAYG Withholding Non-compliance Tax Bill 2012
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Tax Laws Amendment (2012 Measures No. 3) Bill 2012
C2012B00089
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Income Tax (Seasonal Labour Mobility Program Withholding Tax Bill) 2012
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Tax Laws Amendment (Income Tax Rates) Bill 2012
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Tax Laws Amendment (Cross-Border Profit Transfer Pricing) (No. 1) Bill
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Superannuation Legislation Amendment (Stronger Super) Bill 2012
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