• 2016 completed issues

    The following issues were completed in 2016:

    [3731] Remuneration: SA Return to work payments

    Purpose
    Provide clarity regarding redemption amounts payable under the Return to Work Act 2014 (SA).

    Outcome
    TD 2016/18 Income tax: is a redemption payment received by a worker under the Return to Work Act 2014 (SA) assessable income of the worker? was published on 23 November 2016.

    [3752] Right to acquire a beneficial interest in a share

    Purpose
    Confirm our view following the Federal Court decision in Davies v Deputy Federal Commissioner of Taxation [2015] FCA 773.

    Outcome
    TD 2016/17 Income tax: in what circumstances does a contractual right, which is subject to the satisfaction of a condition, become a right to acquire a beneficial interest in a share for the purposes of subsection 83A-340(1) of the Income Tax Assessment Act 1997? was published on 2 November 2016.

    [3769] Earnout arrangements

    Purpose
    Provide certainty on the application of the CGT treatment on non-qualifying arrangements that do not qualify for look-through treatment under Subdivision 118-1 of the Income Tax Assessment Act 1997.

    Outcome
    Because most earnout arrangements created on or after 24 April 2015 will qualify for look-through treatment under Subdivision 118-I of the ITAA 1997, the draft ruling intended to cover this topic is not being progressed.

    TR 2007/D10 (now withdrawn) can be relied upon for earnout arrangements created on or before 7 December 2016.

    We have also provided guidance to assist taxpayers to understand and apply the legislative amendments made on 26 February 2016. That guidance confirms there has been no change to the Commissioner’s view on the CGT consequences for earnout arrangements that do not satisfy the requirements for look-through treatment under Subdivision 118-I of the ITAA 1997.

    See also:

    [3711] Unpaid present entitlement – bad debt

    Purpose
    Provide certainty on the ATO view on whether a beneficiary can claim a deduction under the bad debt provisions for an unpaid present entitlement that is written off.

    Outcome
    TD 2016/19 Income tax: is a beneficiary of a trust entitled to a deduction under section 25-35 of the Income Tax Assessment Act 1997 for the amount of an unpaid present entitlement to trust income that the beneficiary has purported to write off as a bad debt? was published on 14 December 2016.

    [3729] Deductibility of expenditure on commercial website

    Purpose
    Clarify the meaning of ‘software’ for the purposes of Divisions 40 and 328 of the Income Tax Assessment Act 1997.

    Outcome
    TR 2016/3 Income tax: deductibility of expenditure on a commercial website was published on 14 December 2016.

    Last modified: 08 Feb 2017QC 50665