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Advice under development - income tax issues

We are developing advice and guidance on the following income tax issues.

Last updated 27 March 2024

[3887] Infrastructure privatisation framework [updated]

Title

Taxation of Public Private Partnerships for social infrastructure projects

Purpose

This guidance will outline the ATO’s position on the taxation of ‘standard-form’ securitised licence structure social infrastructure Public Private Partnerships.

Expected completion

April 2024

Comments

Draft guidance was issued for consultation on 31 January 2017. Finalisation of this item has been delayed due to enactment of new legislation and priority work.

Contact

Thomas Diggles, Public Groups

Phone: (07) 3213 5901

Thomas.Diggles@ato.gov.au

[3899] Division 7A – undue hardship – corporate trustees

Title

Web guidance

Can a corporate trustee be caused to suffer undue hardship due to payment of a debt for the purposes of subsection 109G(4) of the Income Tax Assessment Act 1936?

Purpose

This guidance will outline whether a corporate trustee could suffer undue hardship on payment of a debt owed to a company for the purposes of subsection 109G(4) of the Income Tax Assessment Act 1936.

Expected completion

Early 2024

Comments

Finalisation of this item has been delayed due to other priority work.

Contact

Peter Glindemann, Office of the Chief Tax Counsel

Phone: (07) 3213 5401

Peter.Glindemann@ato.gov.au

Justin Dearness, Office of the Chief Tax Counsel

Phone: (07) 3213 5745

Justin.Dearness@ato.gov.au

[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 TR 92/14 Income tax: taxation privileges and immunities of prescribed International Organisations and their staff (now withdrawn) following the High Court decisions in Macoun v Commissioner of Taxation [2015] HCA 44 and Commissioner of Taxation v Jayasinghe [2017] HCA 26.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 TR 2019/D1 published on 27 March 2019. Comments period closed 28 May 2019.

The ATO is working through a technical matter and will advise of an expected publication date once the matter is resolved.

Contact

Simon Weiss, Office of the Chief Tax Counsel

Phone: (02) 6216 1943

Simon.Weiss@ato.gov.au

[4000] Royalties and software

Title

Final Taxation Ruling

Income tax: royalties – character of receipts in respect of software

Purpose

Advice on the development and marketing of software was previously provided in TR 93/12 Income tax: computer software (now withdrawn). There is a need to provide updated guidance on modern forms of software distribution including digital channels and cloud computing. This Ruling will provide the Commissioner’s view on the circumstances in which amounts in respect of the licensing and distribution of software will be royalties as defined in subsection 6(1) of the Income Tax Assessment Act 1936.

Expected completion

To be advised

Comments

Draft TR 2021/D4 published on 25 June 2021. Having regard to comments and submissions received in relation to TR 2021/D4, the Commissioner has prepared a further draft Ruling. Draft TR 2024/D1 published on 17 January 2024. Comments period closed 1 March 2024.

Contact

IntangiblesArrangements@ato.gov.au

[4055] Financial advice fees [updated]

Title

Final Taxation Determination

Income tax: deductions for fees paid for financial advice

Purpose

This Determination will set out the Commissioner's view on the deductibility of financial advice fees under sections 8-1 (deductions) or 25-5 (deductions for tax-related expenses) of the Income Tax Assessment Act 1997 for individuals who are not carrying on a business.

This Determination will broaden and update TD 95/60, which was withdrawn when Draft TD 2023/D4 issued.

Expected completion

June 2024

Comments

Draft TD 2023/D4 Income tax: deductions for financial advice fees paid by individuals who are not carrying on a business published on 13 December 2023. Comments period closed on 2 February 2024.

Contact

Danijela Jablanovic, Individuals and Intermediaries

Phone: (07) 3213 5864

Danijela.Jablanovic@ato.gov.au

For more information, see Consultation matter [202303].

[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 the ITAA 1997.

Comments

The Decision impact statement – 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

Nitin.Gulati@ato.gov.au

[4065] Liability of a legal personal representative of a deceased person

Title

Update to PCG 2018/4 Income tax – liability of a legal personal representative of a deceased person

Purpose

This Guideline is being updated to provide improved certainty for legal personal representatives when finalising less complex estates.

Expected completion

April 2024

Comments

Draft PCG 2018/4DC1 Income tax – liability of a legal personal representative of a deceased person published on 27 September 2023. Comments period closed on 10 November 2023.

Contact

Danijela Jablanovic

Phone: (07) 3213 5864

Danijela.Jablanovic@ato.gov.au

For more information, see Consultation matter [202225].

[4081] Corporate collective investment vehicles [updated]

Title

Final Law Companion Ruling

Corporate collective investment vehicles

Purpose

This Ruling will represent the Commissioner’s view on the operation of the Corporate Collective Investment Vehicle regime and support the introduction of the CCIV regime.

Expected completion

May 2024

Comments

Draft LCR 2023/D1 The corporate collective investment vehicle regime published on 1 November 2023. Comments period closed on 15 December 2023.

Contact

Christopher Magee, Office of the Chief Tax Counsel

Phone: (02) 9374 8373

Chris.Magee@ato.gov.au

For more information, see Consultation matter [202205].

[4110] Trustee risk reserve expenses

Title

Final Taxation Determination

Income tax: trustee risk reserves: deductibility of payments made by a superannuation fund to its trustee

Purpose

This Determination will set out the Commissioner’s view on the deductibility for the superannuation fund, under section 8-1 of the Income Tax Assessment Act 1997, of payments made by the trustee of the fund (in its capacity as trustee) to the trustee in its own capacity to address the trustee’s risk of exposure arising from amendments to section 56 of the Superannuation Industry (Supervision) Act 1993. The amendments were effective from 1 January 2022 and expanded the range of penalties that could be incurred by a trustee for which they can no longer use trust assets to pay.

Comments

Draft TD 2023/D3 published on 6 December 2023. The comments period was extended and closed on 29 January 2024.

Expected completion

To be advised

Contact

Ernest Lui, Public Groups

Phone: (02) 9374 2901

PGSuperannuationRiskandStrategy@ato.gov.au

For more information, see Consultation matter [202326].

[4138] Sale of residential premises – profit-making purpose [new]

Title

Decision impact statement on Bowerman and Commissioner of Taxation [2023] AATA 3547

Purpose

This Decision impact statement outlines the ATO's response to the Administrative Appeals Tribunal decision, which concerned the deductibility under section 8-1 of the Income Tax Assessment Act 1997 of a loss incurred by an individual on the sale of her home which she acquired with the purpose of making a profit in a commercial manner.

Comments

The Decision impact statement on Bowerman and Commissioner of Taxation published on 13 March 2024. Comments period closes on 12 April 2024.

Contact

John Churchill, Office of the Chief Tax Counsel

Phone: (03) 6221 0258

John.Churchill2@ato.gov.au

 

QC50315