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Advice under development – income tax issues

We are developing advice and guidance on the following income tax issues.

Last updated 12 December 2024

[3957] Taxation privileges and immunities of international organisations and persons connected with them

Title

Final Taxation Ruling

Income tax: income of international organisations and persons connected with them that is exempt from income tax

Purpose

The final Ruling will update the ATO view in Taxation Ruling TR 92/14 Income tax: taxation privileges and immunities of prescribed International Organisations and their staff (now withdrawn) following the High Court decisions in Macoun v Commissioner of Taxation [2015] HCA 44 and Commissioner of Taxation v Jayasinghe [2017] HCA 26.

Expected completion

To be advised

Comments

Draft Taxation Ruling TR 2019/D1 Income tax: income of international organisations and persons connected with them that is exempt from income tax published on 27 March 2019. Comments period closed 28 May 2019.

Draft Taxation Ruling TR 2024/D2 Income tax: exempt income of international organisations and persons connected with them published on 22 May 2024, replacing TR 2019/D1. Comments period closed 21 June 2024.

Contact

Simon Weiss, Office of the Chief Tax Counsel

Phone: (02) 6216 1943

Simon.Weiss@ato.gov.au

[4056] Decline in value of a depreciating asset

Title

Decision impact statement on Commissioner of Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2

Purpose

The Decision impact statement provides the ATO’s response to the Full Federal Court decision, which concerned whether the amount of the deduction available under section 40-25 of the Income Tax Assessment Act 1997 for the decline in value of a depreciating asset was the cost of that asset by virtue of the operation of section 40-80 of that Act.

Comments

The Decision impact statement on Commissioner of Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2 published on 31 January 2023. Comments period closed on 3 March 2023.

Contact

Nitin Gulati, Office of the Chief Tax Counsel

Phone: (02) 9285 1661

Nitin.Gulati@ato.gov.au

[4115] Personal services business and Part IVA

Title

Final Practical Compliance Guideline

Personal services business and Part IVA of the Income Tax Assessment Act 1936

Purpose

This Guideline explains when we are more likely to apply resources to consider the potential application of Part IVA of the Income Tax Assessment Act 1936 (the general anti-avoidance provisions of the income tax law) to an alienation arrangement where personal services income of an individual is derived through a personal services entity that is conducting a personal services business.

Expected completion

To be advised

Comments

Draft Practical Compliance Guideline PCG 2024/D2 Personal services businesses and Part IVA of the Income Tax Assessment Act 1936 published on 28 August 2024. Comments period closed on 11 October 2024.

Contact

Sally Cummins, Small Business

Phone: (07) 3213 3299

SBPAGConsultation@ato.gov.au

[4145] Application of section 109U to arrangements involving guarantees [updated]

Title

Final Taxation Determination

Income tax: Division 7A – does section 109U of the Income Tax Assessment Act 1936 only apply to arrangements where a private company gives a guarantee to another private company?

Purpose

This Determination sets out the ATO view on whether section 109U of the Income Tax Assessment Act 1936 can apply to arrangements in which a private company gives a guarantee to an entity that is not a private company (for example, a public company financial institution).

The Determination also references the ATO’s compliance approach to the application of section 109U.

Expected completion

To be advised

Comments

Draft Taxation Determination TR 2024/D3 Income tax: Division 7A – does section 109U of the Income Tax Assessment Act 1936 only apply to arrangements where a private company gives a guarantee to another private company? published on 11 December 2024. Comments period closes 31 January 2025.

Contact

Anthony Pulvirenti, Private Wealth

Phone: (07) 3213 8538

anthony.pulvirenti@ato.gov.au

[4194] Capital raised for the purpose of funding franked distributions

Title

Final Practical Compliance Guideline

Capital raised with the effect, and for the purpose, of funding franked distributions

Purpose

This Guideline sets out the ATO’s compliance approach to the assessment of the level of risk that a distribution is unfrankable under section 207-159 of the Income Tax Assessment Act 1997.

Expected completion

To be advised

Comments

Draft Practical Compliance Guideline PCG 2024/D4 Capital raised for the purpose of funding franked distributions – ATO compliance approach published on 4 December 2024. Comments period closes on 31 January 2025.

Contact

Virginia Gogan, Public Groups

Phone: (03) 8632 4643

Virginia.Gogan@ato.gov.au

QC50315