[3708] Forex realisation event 4
Title
Draft Taxation Determination
Income tax: does forex realisation event 4 happen to the debtor under subsection 775-5(1) of the Income Tax Assessment Act 1997 on repayment of a loan taken out prior to the effective date of a choice to use the applicable functional currency and denominated in the same non-Australian dollar currency that later becomes the applicable functional currency?
Purpose
The draft Determination will set out proposed clarification on whether forex realisation event 4 happens on repayment of a loan obligation incurred prior to the effective date of an applicable functional currency choice and denominated in the same non-Australian dollar currency that later becomes the applicable functional currency.
Expected completion
To be advised
Contact
Erin Gordon, Office of the Chief Tax Counsel
Phone: (08) 9268 5353
[4116] Thin capitalisation
Title
Multinational Tax Integrity – strengthening Australia’s interest limitation (thin capitalisation) rules
Purpose
Public consultation on Treasury Laws Amendment (Making Multinationals Pay Their Fair Share-Integrity and Transparency) Bill 2023 has recently concluded.
We are proposing to provide guidance setting out the Commissioner’s views on, and approach to, key aspects of the new thin capitalisation rules.
Stakeholder feedback is sought on potential topics, prioritisation and the form of any potential public advice and guidance.
It is intended that only the most important issues arising from the new law will be addressed through the preparation of early ATO public advice and guidance.
Expected completion date
Post enactment (to be determined)
Contact
Stephen Dodshon, Public Groups
Erin Gordon, Office of the Chief Tax Counsel
[4149] OECD hybrid mismatch rules [new]
Title
Draft Taxation Determination
Income tax: application of certain aspects of the ‘liable entity’ and ‘hybrid payer’ definitions
Purpose
The draft Determination will set out the Commissioner’s preliminary view on certain aspects of the ‘liable entity’ and ‘hybrid payer’ definitions in Division 832 of the Income Tax Assessment Act 1997.
Expected completion date
March 2024