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  • 2019 completed issues

    The following public advice and guidance issues have been completed.

    [3796] Consolidation – tax offsets [NEW]

    [3814] Meaning of 'alteration, extension or improvement' in Division 43 of the Income Tax Act 1997

    [3877] What constitutes ‘use’ for the purposes of section 40–80 of the ITAA 1997?

    [3886] Taxpayer alerts

    [3888] Carrying on a business [NEW]

    [3918] Retirement villages – CGT event L5

    [3940] Inbound supply chains

    [3796] Consolidation – tax offsets

    Purpose
    To replace ATO ID 2015/6 with a taxation determination that provides advice more generally on how a joining entity's non-refundable carried forward tax offsets may be accessed and utilised by the head company of the joined consolidated group.

    Outcome
    After completing our review of this issue, we do not propose to publish any further guidance. The ATO view on this issue in ATO ID 2015/6 remains available on the Legal database.

    [3814] Meaning of ‘alteration, extension or improvement’ in Division 43 of the Income Tax Assessment Act 1997

    Purpose
    To assist taxpayers in determining whether there is an extension, alteration or improvement for the purposes of the capital works deductions. This in turn may have implications for the deductibility of those expenses under another provision of the ITAA 1997.

    Outcome
    We are not proceeding with this advice product. After review, we no longer consider a draft Taxation Ruling to consolidate the existing ATO view documents on this issue is a priority. The ATO view documents on this issue remain available on the Legal database.

    [3877] What constitutes ‘use’ for the purposes of section 40-80 of the ITAA 1997?

    Purpose
    To outline what constitutes ‘use’ (and potentially first use) of a mining, quarrying and prospecting right for the purposes of subsection 40-80(1) of the ITAA 1997.

    Outcome
    TD 2019/1 published on 13 February 2019.

    [3886] Taxpayer alerts

    Purpose
    To provide updated guidance to staff on the process for initiating and issuing a Taxpayer Alert.

    Outcome
    PS LA 2008/15 published on 16 January 2019.

    [3888] Carrying on a business

    Purpose
    To provide advice on when a company carries on a business, including targeted examples explaining the Commissioner's view on whether a company carries on business in common factual scenarios.

    Outcome
    TR 2019/1 published on 5 April 2019.

    [3918] Retirement villages – CGT event L5

    Purpose
    To provide guidance on when CGT event L5 happens for taxpayers continuing to rely on TR 94/24 (withdrawn in April 2000) when a subsidiary that owns or develops a retirement village exits the group.

    Outcome
    After consultation with the Retirement Living Council, we are not proceeding with this guidance.

    [3940] Inbound supply chains

    Purpose
    To provide our compliance approach to the transfer pricing outcomes associated with the following activities of inbound distributors:

    • distributing goods purchased from related foreign entities for resale, and
    • distributing digital products or services where the intellectual property in those products or services is owned by related foreign entities

    Outcome
    PCG 2019/1 published on 13 March 2019.

    Last modified: 26 Apr 2019QC 57881