Terms of reference
To help carry out its role administering the tax system, the Australian Taxation Office (ATO) consults widely with taxpayers, and the business and professional communities. To this end the ATO actively sponsors and promotes a wide range of tailored consultative arrangements.
The ATO recognises the important role tax professionals play in the administration of the Australian tax system. Their contributions are sought through a range of consultative forums, such as the National Tax Liaison Group (NTLG) and its sub-groups, including the Foreign Source Income Sub-group (NTLG FSI Sub-group).
The NTLG and its sub-groups are peak consultative forums, created to focus on topics of strategic importance to the tax system. The community expects the tax system and its administration to be fair, efficient and effective, and its delivery to be as simple and professional, as possible. The key aim of the NTLG and the NTLG sub-groups is to work towards achieving this common goal.
As necessary, the forum will create working groups or liaise with other relevant forums to examine particular issues in more detail.
The role of the NTLG FSI Sub-group
The NTLG FSI Sub-group examines and identifies opportunities to optimise the administration and operation of the foreign source income regime. It focuses strategically on (but is not restricted to):
- identifying and addressing administrative and interpretative issues in relation to the foreign source income. Foreign source income issues for the purposes of this sub-group specifically include matters concerning controlled foreign companies, foreign investment funds, transferor trusts, foreign tax credits, foreign income exemptions, foreign hybrid entities and the interaction of the foreign source income measures with other provisions of the tax legislation (for example, consolidation)
- identifying and addressing administrative and interpretative issues at an operational level in relation to thin capitalisation
- interpreting and clarifying relevant legislation, including providing input into the content of guides and interpretative products
- identifying anomalies and agreeing on appropriate action to escalate them to an appropriate forum or responsible agent for resolution - including the NTLG and/or the Technical Issues Management Sub-group - particularly where an issue has wide ranging ramifications beyond the sub-group's mandate, and
- other matters that may be referred to the sub-group from time to time.
The sub-group does not focus on issues or anomalies requiring resolution by way of legislative or policy change. Where such issues are identified in the course of proceedings, the issue will be escalated to the Technical Issues Management Sub-group of the NTLG, using the required template. The sub-group is not intended to replace the Treasury working groups established to help develop and implement legislative change, but rather to consider the impacts of legislation once it becomes law.
Sections within Purpose
Last Modified: Friday, 21 May 2010