[3957] Taxation privileges and immunities of international organisations and persons connected with them
Title
Final Taxation Ruling
Income tax: income of international organisations and persons connected with them that is exempt from income tax
Purpose
The final Ruling will update the ATO view in Taxation Ruling TR 92/14 Income tax: taxation privileges and immunities of prescribed International Organisations and their staff (now withdrawn) following the High Court decisions in Macoun v Commissioner of Taxation [2015] HCA 44 and Commissioner of Taxation v Jayasinghe [2017] HCA 26.
Expected completion
To be advised
Comments
Draft Taxation Ruling TR 2019/D1 Income tax: income of international organisations and persons connected with them that is exempt from income tax published on 27 March 2019. Comments period closed on 28 May 2019.
Draft Taxation Ruling TR 2024/D2 Income tax: exempt income of international organisations and persons connected with them published on 22 May 2024, replacing TR 2019/D1. Comments period closed on 21 June 2024.
Contact
Simon Weiss, Office of the Chief Tax Counsel
Phone: (02) 6216 1943
[4056] Decline in value of a depreciating asset
Title
Decision impact statement on Commissioner of Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2
Purpose
The Decision impact statement provides the ATO’s response to the Full Federal Court decision, which concerned whether the amount of the deduction available under section 40-25 of the Income Tax Assessment Act 1997 for the decline in value of a depreciating asset was the cost of that asset by virtue of the operation of section 40-80 of that Act.
Comments
The Decision impact statement on Commissioner of Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2 published on 31 January 2023. Comments period closed on 3 March 2023.
Contact
Nitin Gulati, Office of the Chief Tax Counsel
Phone: (02) 9285 1661
[4115] Personal services business and Part IVA
Title
Final Practical Compliance Guideline
Personal services businesses and Part IVA of the Income Tax Assessment Act 1936
Purpose
This Guideline explains when we are more likely to apply resources to consider the potential application of Part IVA of the Income Tax Assessment Act 1936 (the general anti-avoidance provisions of the income tax law) to an alienation arrangement where personal services income of an individual is derived through a personal services entity that is conducting a personal services business.
Expected completion
To be advised
Comments
Draft Practical Compliance Guideline PCG 2024/D2 Personal services businesses and Part IVA of the Income Tax Assessment Act 1936 published on 28 August 2024. Comments period closed on 11 October 2024.
Contact
Sally Cummins, Small Business
Phone: (07) 3213 3299
[4145] Application of section 109U to arrangements involving guarantees
Title
Final Taxation Determination
Income tax: Division 7A – does section 109U of the Income Tax Assessment Act 1936 only apply to arrangements where a private company gives a guarantee to another private company?
Purpose
This Determination sets out the ATO view on whether section 109U of the Income Tax Assessment Act 1936 can apply to arrangements in which a private company gives a guarantee to an entity that is not a private company (for example, a public company financial institution).
The Determination also references the ATO’s compliance approach to the application of section 109U.
Expected completion
To be advised
Comments
Draft Taxation Determination TR 2024/D3 Income tax: Division 7A – does section 109U of the Income Tax Assessment Act 1936 only apply to arrangements where a private company gives a guarantee to another private company? published on 11 December 2024. Comments period closed on 31 January 2025.
Contact
Anthony Pulvirenti, Private Wealth
Phone: (07) 3213 8538
[4165] Disregarding private company loan repayments
Title
Final Taxation Determination
Income tax: disregarding certain payments under section 109R of the Income Tax Assessment Act 1936 in determining how much of a loan has been repaid in situations where notional loans are involved
Purpose
This final Determination will set out the ATO’s view about the interaction of sections 109R and 109T of the Income Tax Assessment Act 1936, including whether section 109R of that Act can operate to disregard loan repayments in cases where there is a notional deemed loan because of sections 109T and 109W.
Expected completion
To be advised
Comments
Draft Taxation Determination TD 2025/D2 Income tax: disregarding certain payments under section 109R of the Income Tax Assessment Act 1936 in determining how much of a loan has been repaid in situations where notional loans are involved published on 5 March 2025. Comments period closed on 17 April 2025.
Contact
Pri Wijesooriya, Private Wealth
Phone: (03) 9285 1262
Priyangi.Wijesooriya@ato.gov.au
[4169] Part IVA held not to apply to a scheme involving use of intra-group debt to acquire an Australian subsidiary productive of tax benefits in Australia
Title
Decision impact statement on Mylan Australia Holding Pty Ltd v Commissioner of Taxation (No 2) [2024] FCA 253
Purpose
This Decision impact statement outlines the ATO's response to this case. The court concluded that the general anti-avoidance provision in Part IVA of the Income Tax Assessment Act 1936 did not apply to a scheme under which the applicant claimed deductions in Australia for interest and carry forward losses incurred from intra-group debt taken on to acquire an Australian subsidiary as part of the acquisition of a pharmaceutical business.
Comments
The Decision impact statement on Mylan Australia Holding Pty Ltd v Commissioner of Taxation (No 2) [2024] FCA 253 was published on 28 February 2025. Comments period closed on 28 March 2025.
Contact
Simon Weiss, Office of the Chief Tax Counsel
Phone: (02) 6216 1943
[4194] Capital raised for the purpose of funding franked distributions
Title
Final Practical Compliance Guideline
Capital raised for the purpose of funding franked distributions – ATO compliance approach
Purpose
This Guideline sets out the ATO’s compliance approach to the assessment of the level of risk that a distribution is unfrankable under section 207-159 of the Income Tax Assessment Act 1997.
Expected completion
To be advised
Comments
Draft Practical Compliance Guideline PCG 2024/D4 Capital raised for the purpose of funding franked distributions – ATO compliance approach published on 4 December 2024. Comments period closed on 31 January 2025.
Contact
Virginia Gogan, Public Groups
Phone: (03) 8632 4643
[4201] Early stage innovation company schemes and Part IVA [updated]
Title
Final Taxation Determination
Income tax: application of Part IVA of the Income Tax Assessment Act 1936 to certain early stage innovation company investment arrangements
Purpose
This final Determination will provide the Commissioner’s view on whether Part IVA of the Income Tax Assessment Act 1936 applies to early stage innovation company (ESIC) schemes as described in Taxpayer Alert TA 2024/1 Early stage investor tax offset claimed using circular financing arrangements.
Expected completion
Mid 2025
Comments
The ATO is currently looking at arrangements designed to inappropriately access the ESIC incentives and other tax benefits.
Draft Taxation Determination TD 2025/D1 Income tax: application of Part IVA of the Income Tax Assessment Act 1936 to certain early stage innovation company investment arrangements published on 28 February 2025. Comments period closed on 28 March 2025.
Contact
Kevin Hu, Office of the Chief Tax Counsel
Phone: (03) 9247 0703