Draft Taxation Determination
Income tax: does forex realisation event happen to the debtor under subsection 775-5(1) of the Income Tax Assessment Act 1997 on repayment of a loan taken out prior to the effective date of a choice to use the applicable functional currency and denominated in the same non-Australian dollar currency that later becomes the applicable functional currency?
The draft Determination will set out proposed clarification on whether forex realisation event 4 happens on repayment of a loan obligation incurred prior to the effective date of an applicable functional currency choice and denominated in the same non-Australian dollar currency that later becomes the applicable functional currency.
To be advised
Erin Gordon, Office of the Chief Tax Counsel
Phone: (08) 9268 5353
Hybrid mismatch rules - subject to foreign income tax
This guidance will address the Commissioner's view on key aspects of the 'subject to foreign income tax' definition, with particular focus on treatment of intra-group payments between members of the same US consolidated group.
Expected completion date
Expected completion of this product is delayed due to higher priority work over the coming months.
Final Practical Compliance Guideline
The final Guideline will set out the ATO's compliance approach to international arrangements connected with the development, enhancement, maintenance, protection and exploitation of intangible assets; specifically, the potential application of the transfer pricing, general anti-avoidance rule (GAAR) and the diverted profits tax (DPT) provisions. The capital gains tax and capital allowances provisions will also be discussed in this Guideline where these may be considered alongside, or relevant to, the ATO's transfer pricing, GAAR or DPT risk assessment.
We made changes to the original draft PCG 2021/D4 based on feedback received through the consultation process and internal review. We published a revised draft guideline PCG 2023/D2 on 17 May 2023. Comments period closed on 16 June 2023.
For more information, see Consultation matter .