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  • Intermediaries

    • [201904] Director identification number user research [NEW]
    • [201901] Proposed public advice and guidance strategy - Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018
    • [201827] Replacing annual tax determinations with web content [UPDATED]
    • [201823] Effective life review of assets
    • [201806] Professional firms – Allocation of profit guidelines and Everett Assignment web material
    • [201615] Single Touch Payroll [UPDATED]

    [201901] Proposed public advice and guidance strategy - Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018

    Registered: January 2019

    Expected completion: February 2019

    Status

    We have published a consultation paper outlining the ATO’s proposed public advice and guidance strategy based on the current version of Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018External Link. We are seeking feedback on the proposed public advice and guidance products outlined in the paper. Feedback can be provided to the contact officer by 28 February 2019.

    Purpose

    To seek feedback and examples which may assist the Commissioner in developing public advice and guidance.

    Description

    Community input is being sought on our proposed public advice and guidance strategy on measures contained in the Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018. The proposal outlines the products that we expect to publish, including the topic areas and additional description and/or details for each topic.

    Amongst other things, the Bill seeks to improve the integrity of the income tax law for arrangements involving stapled structures and to limit access to tax concessions for foreign investors by increasing the managed investment trust (MIT) withholding rate on fund payments that are attributable to non-concessional MIT income to 30%.

    Who we are consulting

    We are consulting broadly with the community.

    Contact

    Tim Rowe, Assistant Commissioner, Tax Counsel Network

    tim.rowe@ato.gov.au telephone (03) 9285 1798External Link

    [201827] Replacing annual tax determinations with web content

    Registered: January 2019

    Expected completion: February 2019

    Status

    We are considering the feedback received during consultation on this proposal.

    Purpose

    We are seeking feedback on the impact of replacing our annual taxation determinations with web content.

    Description

    We publish 12 taxation determinations each year (annual taxation determinations) on indexation factors, thresholds, rates, reasonable amounts and certain values relevant for fringe benefits tax (FBT), income tax and luxury car tax.

    The annual taxation determinations can be accessed on the Legal database. Most of the information in these determinations is also available as web content on ato.gov.au, for example, FBT rates and thresholds.

    Making the information in these annual taxation determinations available only on ato.gov.au:

    • improves the timeliness of publishing this information
    • provides users with easier, simpler, quicker access to this information.

    If implemented, the change is proposed to only impact annual taxation determinations for the 2019–20 income year (or financial year) and the 2020–21 FBT year, and onward.

    Who we are consulting

    We are consulting broadly with the community and through our Stewardship groups.

    Contact

    Pei-Sheng Hsu, Public Advice and Guidance Unit, Private Groups and High Wealth Individuals

    Pei-Sheng.Hsu@ato.gov.au telephone (07) 3213 5371External Link

    [201806] Professional firms – Allocation of profit guidelines and Everett Assignment web material

    Registered: February 2018

    Expected completion: June 2019

    Status

    The ATO is compiling feedback provided by the working group and assessing alternative risk assessment methodologies proposed.

    In June 2018 the ATO provided further certainty regarding the year ending 30 June 2018, stating that those taxpayers who have entered into arrangements prior to 14 December 2017 which comply with the guidelines and do not exhibit any of the high risk factors outlined below can continue to rely on the suspended guidelines for the year ending 30 June 2018.

    Purpose

    To review existing ATO guidance products with a view to issuing revised and updated guidance.

    Description

    The 'Assessing the Risk: Allocation of profits within professional firms guidelines' and Everett Assignment web material published in 2015 stated that they would be reviewed in 2017. In reviewing the guidelines the ATO has become aware they are being misinterpreted in relation to arrangements that go beyond the scope of the guidelines.

    The ATO is consulting with interested stakeholders on replacement guidance.

    Some of the concerns identified to date include the following arrangements:

    • lack of any meaningful commercial purpose regarding arrangements such as:                                  
      • disposal of an equity interest through multiple assignments
      • the creation of new discretionary entitlements such as Dividend Access Shares
      • utilising amortisation leading to differences between tax and accounting income
    • disregard for Capital Gains Tax (CGT) consequences and inappropriate use of CGT concessions
    • assignments where profit sharing is not directly proportionate to the equity interest held
    • the creation of artificial debt deductions
    • undertaking an assignment to dispose of an equity interest to a self-managed superannuation fund
    • assignments where the arrangement is not on all fours with the principles of Everett and Galland.

    Who we are consulting

    • professional bodies, including representatives of tax and accounting professional associations
    • tax practitioners

    Contacts

    Simon Webster, Director, Professional Firms
    Simon.Webster2@ato.gov.au telephone (03) 9275 5328External Link

    Chris Hill
    Christopher.Hill@ato.gov.au telephone (03) 9275 4277External Link

    Last modified: 01 Mar 2019QC 54486