FSI minutes, July 2008

11. Other business

An additional number of agenda items were submitted by the representative from PWC. Due to the short time between submission of the item and the date of the meeting, these items were discussed at a preliminary level:

1. Eligibility of a foreign hybrid entity to become a subsidiary member of an existing Australian income tax consolidated group.
    
   The Chair advised that this technical issue is being handled by the NTLG Consolidations Sub-group together with the International Centre of Expertise. An update on the progress of the examination of this issue will be sought from the NTLG Consolidations Sub-group and provided to members at the next meeting.
    
2. Classification of an interest in a Guernsey Protected Cell Company (GPCC), (ATO ID 2008/23). What impact does this ATO ID have on the following; an investment by redeemable preference share (RPS) in a GPCC, whether attribution may apply and the application of 23AJ ITAA 1936 to dividends received on the RPS?
    
   This matter will be referred to the International Centre of Expertise for any comment on the issues raised, at the next meeting.
    
3. ATO ID 2007/63 was withdrawn on 8 February 2008 which dealt with the single entity rule and foreign Branch Transactions. What is the timeframe for any replacement product?
    
   This matter has been all ready raised with the NTLG Consolidations Sub-group. An update on the progress of any replacement product for ATO ID 2007/63 will be sought from that sub-group and provided to members at the next meeting.
    
4. The treatment of Foreign Hybrids in Sub-division 768-G. (related item (FSICG 1104/07). Will the Tax Office release a draft of the final tax determination to members of the FSISG prior to a more general release to taxpayers to allow FSISG members to have the opportunity to comment?
    
   The chair advised that the release of a draft ruling prior to the final ruling is not the preferred process adopted by the Tax Office. During the drafting period the public are invited to submit comments or submissions on the topic under consideration. Until the final ruling is released, typically it is under embargo and may not be released prior to finalisation. The compendium of submissions on a final ruling is available to the public to allow perusal of comments received.
    
5. In relation to Draft Taxation Determination TD 2007/D14 and TD 2007/D15 which the Tax Office intends to finalise soon, could the Tax Office please provide an explanation as to the grounds on which the rulings panel dismissed PricewaterhouseCoopers' submission in relation to these TDs. (related to FSISC 1104/08).
    
   The Chair advised the compendium of submissions on a final TD is available to the public to allow perusal of comments received and the Tax Office's response.

Sections within Agenda items

• 1. Introduction and welcome
• 2. Confirmation of minutes of the previous meeting
• 3. Action items from previous meeting
• 4. Issues Register including priority items in numeric order
• 5. Foreign hybrids
• 6. Initial discussion on agenda item submitted by the ICAA
• 7. International Tax Ruling Program and other advice products
• 8. Treasury update
• 9. International New Measures
• 10. The utilisation of CGT elections section 319 and 421 within the Tax Office.
• 11. Other business