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  • Advice under development – international issues

    Effect of COVID-19 on our work

    Our public advice and guidance program continues to have a focus on COVID-19-related issues, including:

    • consideration of tax and super issues arising from the impacts of COVID-19 on the community, and
    • providing practical guidance on the tax and super aspects of the Government’s economic response.

    However, we have returned to our ongoing program of work and are updating the status of issues listed on the Program.

    If you are concerned about the delay in the delivery of particular pieces of public advice and guidance, email us at publicguidance@ato.gov.au

    [3708] Forex realisation event 4

    Title
    Draft Taxation Determination
    Income tax: does forex realisation event 4 happen to the debtor under subsection 775-55(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?

    Registered
    February 2015

    Purpose
    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.

    Expected completion
    To be advised

    Contact
    Erin Gordon, Tax Counsel Network
    Phone: (08) 9268 5353
    Erin.Gordon@ato.gov.au

    [3932] Taxing US and UK resident financial institutions under US and UK taxation conventions

    Title
    Final Addendum to Taxation Ruling TR 2005/5
    Income tax: ascertaining the right to tax United States (US) and United Kingdom (UK) resident financial institutions under the US and the UK Taxation Conventions in respect of interest income arising in Australia

    Registered
    July 2018

    Purpose
    The final Addendum will clarify certain aspects of the second limb of the definition of 'financial institution' which is used in Australia's double-tax conventions with the US and the UK.

    Expected completion
    Early 2021

    Comments
    The draft consolidation for TR 2005/5 published on 28 November 2018. Comments period closed on 11 January 2019. We are further considering comments and issues raised both during consultation and from subsequent casework.

    Contact
    James Campbell, Public Groups and International
    Phone: (02) 9374 8955
    James.Campbell@ato.gov.au

    [3950] OECD hybrid mismatch rules

    Title
    Final Taxation Determination
    OECD hybrid mismatch rules – foreign law interactions Income tax: is section 951A of the US Internal Revenue Code a provision of a law of a foreign country that corresponds to sections 456 or 457 of the Income Tax Assessment Act 1936 for the purpose of subsection 832-130(5) of the Income Tax Assessment Act 1997?

    Registered
    October 2018

    Expected completion
    Early 2021

    Comments
    Draft TD 2019/D12 published on 21 November 2019. Comments period closed on 17 January 2020. We are also considering other options and formats for other areas of foreign law interactions with Division 832 where clarification may be required.

    Contact
    HybridMismatches@ato.gov.au

    Title
    Hybrid mismatch rules – subject to foreign income tax

    Registered
    June 2020

    Purpose
    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
    Mid 2021

    Contact
    Hybridmismatches@ato.gov.au

    Title
    Draft Practical Compliance Guideline
    Hybrid mismatch rules – imported hybrid mismatch rules

    Registered
    August 2020

    Purpose
    This draft Guideline will set out the Commissioner’s proposed compliance approach on the imported mismatch rule in Subdivision 832-H of the Income Tax Assessment Act 1997 in respect of the direct and indirect payments.

    Expected completion date
    March 2021

    Contact
    Hybridmismatches@ato.gov.au

    [4006] Intangibles arrangements

    Title
    Draft Practical Compliance Guideline
    Intangibles arrangements

    Registered
    August 2020

    Purpose
    This draft Guideline will set out the ATO's proposed 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 draft Guideline where these may be considered alongside, or relevant to, the ATO’s transfer pricing, GAAR or DPT risk assessment.

    Expected completion
    Early/Mid 2021

    Comments
    Targeted consultation is currently underway for this matter.

    Contact
    PGIIntangiblesMigration@ato.gov.au

    See also:

    Last modified: 03 Mar 2021QC 50317