Division 815 Technical working group Minutes – 31 July 2014

Meeting details


747 Collins St Melbourne




31 July 2014








Michael Jenkins


Caroline Briers

Contact and Secretariat:

Caroline Briers

Contact phone:

(03) 9285 1502


ATO Members


Michael Jenkins

Assistant Commissioner, Public Groups and International

Caroline Briers


Michael McCormack

Senior Tax Counsel

Kevin O'Shaughnessy

Senior Director, Technical Leadership Group

Andrew Peake (via phone)

Senior Director, Technical Leadership Group

Gus Falkenhagen

Senior Director, Profit Shifting Practice (Project Manager)

External representatives

Reynah Tang


Soulla McFall


Vanda Davis


Damian Preshaw


Anthony Seve (via phone)


Richard Atkinson (for Michelle DeNiese)


Sharon Jansen


Stuart Edwards

ATO appointee

Denise Honey

ATO appointee

Michael Kobetsky

ATO appointee


Chris Bowman

ATO appointee

Michelle DeNiese


Agenda items


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

The Chair welcomed the group and introduced Michael Kobetsky who had joined the group for the first time.

2. Minutes of 3 July meeting

Minutes were accepted. May minutes are available on website.

3. Simplification options – recap and update

The ATO advised:

  • Work is progressing; the draft document has been distributed widely for consultation and feedback, with responses due by 8 August.
  • It is intended that the final product will be released with the documentation package.
  • The definition of economic group hasn't been codified at this time.
  • Members are encouraged to provide input by 8 August.

4. Future areas of focus

The ATO advised:

  • Next area of focus the ATO is considering is an interpretive product on consequential adjustments.
  • It is not intended at this point that arbitration will be considered as part of this as it doesn't relate to the interpretation of 815-145.
  • Members are invited to provide submissions on other priorities for consideration and are requested to detail reasons to support priority.
  • ATO will need to balance this within time and resource constraints.

Members considered that it would be beneficial to get a holistic framework of the ATO view of the law. CTA will consider this and provide a submission.

Action Item number


Action item name

Submission on priority for future work





Expected delivery date

August 2014

5. Discussion – TR2014/D3

The ATO provided the draft compendium prior to the meeting with feedback from members suggesting discussion focus on:

  • economic substance
  • interaction between basic rule and exceptions
  • congruence with OECD guidance
  • specific issue: thin capitalisation and 815-140.

Discussion was held on these issues with feedback received from the authoring team and working party members that they felt the discussion was beneficial to their understanding of each other's positions.

6. Other business

Member raised the issue of how the new rules apply to arrangements already entered into prior to the enactment of the legislation.

The ATO advised that the issue will be taken under consideration regarding the best way to address this.

Action Item number


Action item name

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


Michael McCormack



Expected delivery date

September meeting

Next meeting

The next meeting is scheduled for 25 August 2014 to discuss TR2014/D4.

    Last modified: 10 Sep 2014QC 42345