• Division 815 Technical working group Minutes - 25 August 2014

    Meeting details

    Venue:

    747 Collins St Melbourne

    52 Goulburn St Sydney

    Teleconference

    Date:

    25 August 2014

     

     

    Start:

    10.00am

    Finish:

    1.00pm

    Chair:

    Kevin O'Shaughnessy

    Facilitator:

    Caroline Briers

    Contact and Secretariat:

    Caroline Briers

    Contact phone:

    (03) 9285 1502

    Attendees

    ATO Members

     

    Kevin O'Shaughnessy

    Senior Director, Technical Leadership Group

    Caroline Briers

    Secretariat

    Helen Kelly

    Senior Tax Counsel

    Frank Cipriano

    Director, Technical Leadership Group

    Michelle Osler

    Director, Technical Leadership Group

    Andrew Phlorides

    Technical Leadership Group

    Catherine Armstrong

    Director, Technical Leadership, PG&H

    Daryl Cornish

    Director, Profit Shifting Practice

    External representatives

     

    Reynah Tang

    LCA

    Soulla McFall

    CPAA

    Vanda Davis

    FCAI

    Damian Preshaw

    TIA

    Anthony Seve

    ICAA

    Paul Stacey (for Wayne Sutherland)

    ABA

    Sharon Jansen

    MCA

    Stuart Edwards

    ATO appointee

    Chris Birchall (for Denise Honey)

    ATO appointee

    Michael Kobetsky (by phone)

    ATO appointee

    Michael Polatajko (by phone)

    Treasury

    Ivar Kvistad (by phone)

    Treasury

    Apologies

    Michael Jenkins

    ATO

    Chris Bowman

    ATO appointee

    Wayne Sutherland

    ABA

    Michelle DeNiese

    CTA

    Agenda items

    Disclaimer

    Division 815 Technical working group agendas, minutes and related papers are not binding on the Australian Taxation Office (ATO) or any of the other bodies referred to in these papers. While every effort is made to accurately record views expressed, the wording necessarily represents a summary of statements of general position only, and care should be taken in interpreting those statements. These papers reflect the position at the date of release (unless otherwise noted) and readers should note that the position on any issue may subsequently change.

    1. Introduction and Welcome

    Kevin O'Shaughnessy welcomed members and advised that Michael Jenkins was unable to attend the meeting and that Kevin would substitute as chair.

    2. Minutes of 31 July meeting

    Minutes were accepted. 3 July minutes are available on website.

    There are two outstanding action items that will be held over to the October meeting

    Action Item number

    31072014.01

    Action item name

    Submission on priority for future work

    Responsibility

    CTA

    Status

    Open

    Expected delivery date

    August 2014

     

    Action Item number

    31072014.02

    Action item name

    Application of 815-B to arrangements entered into prior to enactment

    Responsibility

    Michael McCormack

    Status

    Open

    Expected delivery date

    September meeting

    3. Discussion

    At the request of a participant the chair advised that PSLA 3672 would be discussed first.

    3.3 PSLA 3672

    The ATO provided the draft compendium prior to the meeting and a number of issues were discussed relating to the general penalty provisions in light of 284E.

    The ATO advised:

    • Focus is to ensure consistency with uniform penalty regime
    • Matters covered under uniform penalty regime will not be included to ensure that we don't over-prescribe and exclude people
    • The separate simplification options dove-tail into red tape reduction

    Written submissions and matters raised in consultations are reflected in the compendium to be published at the time of publication of the final PSLA.

    3.1 TR2014/D4

    The ATO provided the draft compendium prior to the meeting and discussion was held regarding issues raised.

    Written submissions and matters raised in consultations are reflected in the compendium to be published at the time of publication of the final ruling.

    3.3 PSLA 3673

    The ATO provided the draft compendium prior to the meeting and discussion was held regarding issues raised.

    The ATO advised:

    • The PSLA has been refocussed to be principle based
    • There is more focus on outcomes rather than process

    Written submissions and matters raised in consultations are reflected in the compendium to be published at the time of publication of the final PSLA.

    4. Update -

    4.1 Project management

    The ATO advised:

    • Gus Falkenhagen is leaving the ATO and will be replaced as project manager
    • Due to this, no further Customs/Treasury/ATO meeting has been arranged at this stage.

    4.2 Rulings panels

    The ATO advised:

    • The rulings panel for TR2014/D3 is scheduled for 28 August
    • The rulings panel for TR2014/D4 is scheduled for 25 September.

    4.3 Simplification measures

    The ATO advised:

    • Extensive feedback has been received on the draft paper
    • Feedback is currently being collated in a compendium
    • It is expected that the reworked simplification product will be completed in time to be published with the other advice on documentation.

    5. Other business

    Members requested that the ATO provide an updated version of the priority list discussed at the last meeting and advise what the ATO considered the priority of work should be.

    Action Item number

    25082014.01

    Action item name

    Update list of priority work

    Responsibility

    ATO

    Status

    Open

    Expected delivery date

    October meeting

    Next meeting

    Two further meetings have been scheduled for the remainder of the year, 14 October and 26 November 2014.

      Last modified: 10 Nov 2014QC 43093