[3899] Division 7A – undue hardship – corporate trustees [updated]
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
May 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
Justin Dearness, Office of the Chief Tax Counsel
Phone: (07) 3213 5745
[3957] Taxation privileges and immunities of international organisations and persons connected with them [updated]
Title
Draft Taxation Ruling
Income tax: income of international organisations and persons connected with them that is exempt from income tax
Purpose
The draft Ruling will outline the proposed updates to 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TR 92/14 Income tax: taxation privileges and immunities of prescribed International Organisations and their staff (now withdrawn) following the High Court decisions in Macoun v Commissioner of Taxation [2015] HCA 44 and Commissioner of Taxation v Jayasinghe [2017] HCA 26.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
May 2024
Comments
An initial draft TR 2019/D1 published on 27 March 2019. Comments period closed 28 May 2019.
Given the time that has passed since publication of TR 2019/D1 and because there are some additions to accommodate recent legislative changes, we are publishing a second draft Ruling prior to proceeding to a final Ruling.
Contact
Simon Weiss, Office of the Chief Tax Counsel
Phone: (02) 6216 1943
[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on the development and marketing of software was previously provided in TR 93/12 Income tax: computer software (now withdrawn).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
Mid-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
[4081] Corporate collective investment vehicles
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
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].
[4155] Eligibility of R&D activities and feedstock adjustment [new]
Title
Decision impact statement on GQHC and Commissioner of Taxation [2024] AATA 409
Purpose
This Decision impact statement outlines the ATO's response to the Administrative Appeals Tribunal's (AAT's) decision. In this case, the AAT considered:
- whether the Commissioner has the power to assess or make decisions as to whether a research and development (R&D) entity's registered activities consisted of eligible R&D activities as defined in Division 355 of the Income Tax Assessment Act 1997
- the eligibility of GQHC's registered activities, and
- (assuming an R&D tax offset was available) whether expenditure incurred by GQHC in acquiring or producing both day-old broiler chickens and poultry feed given to chickens were feedstock input expenditure which requires a feedstock adjustment.
Comments
The Decision impact statement on GQHC and Commissioner of Taxation published on 12 April 2024. The comments period closes on 10 May 2024.
Contact
Daniel Schiava, Office of the Chief Tax Counsel
Phone: (08) 8218 9307