Action item
|
FSISG 0708/5.1
Transitional application of ATO ID 2008/99 (replacing the view in 2006/40) and the policy application of Part XI exemptions.
|
Action
|
Tax Office to liaise with external member to consider the member's concerns.
|
Status
|
Finalised
|
Members advised they were concerned about any transitional application which may occur with the development of a replacement product. It was suggested that some taxpayers may be disadvantaged where an irrevocable election has been made on the basis of ATO ID 2006/40.
An IFSA survey had indicated that some members had relied on the view of the law in ATO ID 2006/40, but most had not. Those who have relied on it have not as yet engaged the Tax Office with their particular issue or situation.
The Tax Office indicated that any IFSA members are welcome to approach the Tax Office with their particular circumstances.
ASFA has also been contacted in relation to this issue and has raised this issue with its members. The Tax Office indicated that any ASFA members are welcome to approach the ATO with their particular circumstances.
Where sufficient numbers of taxpayers indicate they have placed some reliance on the previous ATO ID there may be scope to consider some form of industry arrangements.
Members were advised that there would be further opportunity to make submissions on the issue when the Tax Office issues a draft Tax Determination (TD) on the interaction of the foreign hybrid rules and foreign investment fund (FIF) exemptions (including the super fund exemption). Work on this document is listed to commence after significant progress has been made on the two higher priority documents currently in course of development.
Another member raised a side issue as to whether a replacement product would be produced for the recently withdrawn ATO ID 2008/117 and what taxpayers who had relied on it could do in the transitional period. The issue of whether the Tax Office had or is going to change its view from that contained in the withdrawn ATO ID was also raised.
The Tax Office replied:
- Two members had already raised issues out of session surrounding the reasons for the withdrawal and what will be the Tax Office's view.
- The withdrawn ATO ID is currently being reviewed by officers within the International Centre of Expertise, this being consistent with what is stated in the reasons for withdrawal.
- The ATO ID was withdrawn as it was considered to be inadequate on its face.
- We had not reached a final position as yet as a result of the review of the ATO ID.
- The circumstances in this particular ATO ID differ from those in ATO ID 2006/40 as in the latter ATO ID a taxpayer may have made an irrevocable election which may affect the tax liability of a taxpayer.
- Given that the Tax Office could not confirm at this point whether or not there will be any change to the view reached on the substantive issue in the ATO ID, transition matters are best left until the completion of the review.
Members were also reminded that the technical positions stated in ATO IDs are not legally binding on the Commissioner, being only guidance for Tax Office staff.
Action item
|
FSISG 0708/5.3
Working group to be established to scope and examine the requirement of a Australian partner to lodge a partnership return where the partnership is a Foreign Hybrid.
|
Status
|
In progress
This action item is addressed at agenda item 5.
|
3.1 Action items from previous meetings
Action item
|
FSISG 0408/03 (raised as FSISG 0807/04.1)
Part year disposals of an interest in a FIF/limited liability company (LLC).
Professional association members to provide update of any representations made to Treasury.
|
Status
|
In progress
A minute has been sent to Treasury.
|
Action item
|
FSISG 0408/04
Foreign hybrids and obtaining a partnership tax file number (TFN) for return lodgement where there is only one partner.
|
Status
|
Finalised
The item is discussed at agenda item 5.
|
Action item
|
FSISG 0408/05
Foreign hybrids and lodgment of partnership returns.
Tax Office to report to members at the next meeting the position the Tax Office will take with regards to lodgement of partnership returns for foreign hybrids.
|
Status
|
In progress
The item is discussed at agenda item 5.
|
Sections within Agenda items
Last Modified: Friday, 21 May 2010