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  • Intermediaries

    [201932] Large Market Independent Review Process

    Registered

    October 2019

    Expected completion of consultation

    December 2019

    Consultation status

    We are continuing to consult with members of the National Tax Liaison Group and the Corporate Tax Association. 

    Consultation purpose

    To understand the experience of tax advisors involved in the LMIR process and obtain any insights or suggestions that may make the process more effective and efficient for both taxpayers and the Tax Office.

    Description

    The LMIR process was implemented by the ATO in July 2013.

     

    A review is being undertaken to assess the effectiveness and efficiency of the LMIR process and determine whether there are any areas for improvement.

    Who we are consulting

     

    Consultation lead

    Ben Middleton, Review and Dispute Resolution
    ben.middleton@ato.gov.au
    Phone (03) 9285 1171

     

    Abdo Dirani, Public Groups and International
    abdo.dirani@ato.gov.au
    Phone (02) 9374 8189

    [201928] Access to deceased taxpayers‘ information

    Registered

    September 2019

    Expected completion of consultation

    January 2020

    Consultation status

    The Commissioner is proposing to exercise his remedial power to modify the law to enable the ATO to provide protected information of the deceased directly to tax agents, BAS agents and legal practitioners of executors and administrators who have received a grant of probate or letters of administration of the deceased estate.

     

    The ATO is seeking feedback by 20 December 2019 on Draft Legislative Instrument CRP 2019/D1 - Draft Taxation Administration (Remedial Power-Disclosure of Protected Information by Taxation Officers) Determination 2019 and the Explanatory Statement to CRP 2019/D1 - Draft Taxation Administration (Remedial Power-Disclosure of Protected Information by Taxation Officers) Determination 2019.

    Consultation purpose

    To seek feedback on issues relating to access to deceased taxpayer information and for the ATO to consider all administrative and interpretive options/solutions that may be available.

    Description

    Access to deceased taxpayers‘ information is not provided to agents, legal practitioners and certain other representatives through the new ATO Online Services for Agents.

    Who we are consulting

     

    Consultation lead

    Lloyd Williams, Project Officer, Individuals and Intermediaries
    tpsg@ato.gov.au
    Phone (02) 6216 1030

    [201909] Activity statement financial processing (ASFP) project

    Registered

    April 2019

    Expected completion of consultation

    January 2020

    Consultation status

    Consultation has transitioned from 'Awareness’ to the 'Get Ready' phase. Consultation is currently focused on:

    • proposed communications to inform and prepare tax professionals and stakeholders of changes and improvements that will occur as a result of the release
    • proposed tailored communication to inform tax professionals and stakeholders on the impacts they will experience as part of the ASFP release.

    An Activity Statement Financial Processing Working Group has been established with members from the Tax Practitioner Stewardship Group. The group has been meeting regularly since April 2019.

    Consultation purpose

    To:

    • raise awareness across the tax profession and key stakeholders of the changes ASFP will bring
    • ensure we engage with a broad cross section of the community, including digital service providers, tax professional associations and other government agencies
    • work in partnership with key stakeholders to understand the impact on business processes and help shape and tailor the communication approach.
     

    Description

    The intent of the ASFP project is to continue rationalisation of the internal accounting systems and transition Indirect Tax accounts, primarily Activity Statement and Franking Deficit Tax accounts, and related processes into the ATO's Integrated Core Processing (ICP) system.

     

    ASFP will deliver a single accounting system with multiple accounts and a single case management system for debt work, with the exception of excise. There will be an improved analytics system allowing tailored client interactions for debt, which can be used across other products.

    Who we are consulting

    • Tax professional associations
    • Small business
    • Digital service providers
    • Other government agencies
    • ATO staff
     

    Consultation lead

    Mary Arrowsmith, Assistant Commissioner, ASFP Senior Responsible Officer, Client Account Services
    mary.arrowsmith@ato.gov.au
    Phone (02) 4223 2235

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

    Registered

    February 2018

    Expected completion of consultation

    June 2020

    Consultation status

    Feedback is currently being collated and reviewed to incorporate into proposed draft guidance prior to further consultation.

    Consultation 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.

    The ATO has, for the years ended 30 June 2018 and 30 June 2019, stated that taxpayers who entered into arrangements prior to 14 December 2017 which comply with the guidelines and do not exhibit any of the high risk factors outlined above can continue to rely on the suspended guidelines.

    Who we are consulting

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

    Consultation lead

    Simon Webster, Director, Professional Firms
    simon.webster2@ato.gov.au
    Phone (03) 9275 5328

     

    Chris Hill, Law Interpretation officer, Private Wealth
    christopher.hill@ato.gov.au
    Phone (03) 9275 4277

      Last modified: 18 Dec 2019QC 54486