TPRE 2020/D2


AUSTRALIAN GOVERNMENT

Taxation Administration Act 1953

I, Louise Clarke, Deputy Commissioner of Taxation, make this determination under subsection 396-70(4) of Schedule 1 to the Taxation Administration Act 1953.

Draft Legislative Instrument

Name of instrument

1. This instrument is the Taxation Administration Excluded Classes of Transactions and Entities for Third Party Reports on Shares and Units Determination 2020.

Commencement

2. This instrument commences on 1 July 2017.

Repeal of previous instrument

3. This instrument replaces Legislative instrument No. F2018L00473 Excluded Classes of Transactions and Entities For Third Party Reports on Shares and Units Determination 2018 registered 9 April 2018. The previous instrument is repealed on the commencement of this instrument.

Application

4. This instrument applies to:

(a)
companies whose shares are listed for quotation in the official list of an Australian financial market
(b)
trustees of a unit trust, and
(c)
trustees of a trust (other than a unit trust) who hold shares in a company or units in a unit trust to which one or more beneficiaries of the trust are absolutely entitled, in relation to transactions in an income year for which the trustee does not give the Commissioner of Taxation an income tax return.

Determination

5. An entity to which this instrument applies is not required to provide information to the Commissioner of Taxation under table items 6 or 8 in section 396-55 of Schedule 1 to the TAA in relation to a transaction where:

(a)
the transaction relates to a share in a company that is listed for quotation in the official list of an Australian financial market, and
(b)
data in relation to transactions on that Australian financial market is not required to be delivered to the Australian Securities and Investments Commission under the market integrity rules.

6. A trustee of a unit trust is not required to provide information to the Commissioner of Taxation under table item 7 in section 396-55 of Schedule 1 to the TAA in relation to a transaction where, at the time of the transaction:

(a)
the unit trust has fewer than 10 beneficiaries, and
(b)
the total market value of the assets held by the trustee in the unit trust is less than $5 million.

7. A trustee of a trust (other than a unit trust) is not required to provide information to the Commissioner of Taxation under table item 8 in section 396-55 of Schedule 1 to the TAA in relation to a transaction where, at the time of the transaction:

(a)
the trustee is not required to hold an Australian financial services licence, within the meaning of section 761A of the Corporations Act 2001, and
(b)
the total market value of the assets held by the trustee in all trusts of which it is a trustee is less than $5 million.

8. A trustee of a trust (other than a unit trust) is not required to provide information to the Commissioner of Taxation under table item 8 in section 396-55 of Schedule 1 to the TAA in relation to a transaction that relates to shares in a company that are not listed for quotation in the official list of an Australian financial market.

9. A trustee of a trust (other than a unit trust) is not required to provide information to the Commissioner of Taxation under table item 8 in section 396-55 of Schedule 1 to the TAA in relation to a transaction where the trustee can reasonably expect that:

(a)
some other entity will include information about the transaction in a report given to the Commissioner of Taxation under table item 5, 6, 7 or 8 in section 396-55 of Schedule 1 to the TAA, and
(b)
that report will identify, as the owner of the shares or units, the entity that is absolutely entitled to them as a beneficiary of the trust.

10. An entity to which this instrument applies is not required to provide information to the Commissioner of Taxation under table items 6, 7 or 8 in section 396-55 of Schedule 1 to the TAA in relation to a transaction where any entity is required to provide information to the Commissioner in relation to the transaction under Division 392 of Schedule 1 to the TAA (which is about employee share schemes).

11. An entity to which this instrument applies is not required to report transactions where an investment is disposed of or purchased without the consent of the investor if the transaction is reversed.

Additional Information

12. This instrument does not prevent the reporting of information where not reporting it would impose an increased administrative burden on the reporting entity.

Definitions


Australian financial market means a financial market (within the meaning of Chapter 7 of the Corporations Act 2001) operating under an Australian market licence granted under subsection 795B(1) of that Act.

market integrity rules means rules made under section 798G of the Corporations Act 2001.

All other terms take their meaning from section 995-1 of the Income Tax Assessment Act 1997.

Consultation

Subsection 17(1) of the Legislation Act 2003 requires, before the making of a determination, that the Commissioner is satisfied that appropriate and reasonably practicable consultation has been undertaken.

As part of the consultation process, you are invited to comment on the draft determination and its accompanying draft explanatory statement.

Please forward your comments to the contact officer by the due date.

Due date: 9 July 2020
Contact officer: Michelle Dorey
Email: Michelle.Dorey@ato.gov.au
Phone: (02) 6216 1437



Louise Clarke
Deputy Commissioner of Taxation
Policy, Analysis and Legislation
Law Design and Practice


Related Explanatory Statements:

TPRE 2020/D2 - Explanatory statement