Latest developments in tax
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On 28 August 2019, the ATO released a draft Practical Compliance Guideline on its risk assessment framework and compliance approach on the application of the arm’s length debt test (ALDT) for thin capitalisation purposes. The PCG is intended to have effect from 1 July 2019 and will apply where the ALDT has been used to establish an entity’s maximum allowable debt from this date.
Recent Tax insights
On 1 July 2019, the tax and general whistleblower provisions of Treasury Laws Amendment (Enhancing Whistleblower Protections) Act 2019 became operative. This Act streamlined the whistleblower regime within the Corporations Act 2001, and established a new tax whistleblower regime in Australia.
The Australian Taxation Office has released a consultation document on expanding the Reportable Tax Position regime to large private companies and corporate groups for income years ending on or after 30 June 2020.
It’s time to start considering how the application of the RTP regime will affect you and how you will prepare.
The ATO issued Taxation Determination TD 2019/10 on 3 July 2019, which deals with the interaction of the transfer pricing rules and the debt / equity rules.
The ATO’s view is that the debt / equity rules cannot limit the operation of the transfer pricing rules for related party financing transactions. The ATO view is that the debt/equity rules apply to classify the interest that arises by reference to the arm’s length conditions which are identified, not to the actual conditions.
The Australian Taxation Office has recently shared the Top 1,000 Tax Performance Program (Income tax) Findings Report which highlights their key findings from over 280 streamlined assurance reviews conducted to March 2019 on large public and multinational taxpayers, as part of the Justified Trust program.
On 5 July 2019, the Treasury Laws Amendment (Tax Relief So Working Australians Keep More of Their Money) Act 2019 was given Royal Assent.
This passed into law all three stages of personal tax cuts, which the Coalition Government announced in the 2019-20 Federal Budget and follows significant tax cuts announced and legislated in the previous term of Parliament.
To address black economy concerns and enhance supply chain integrity, businesses tendering to the Federal Government must meet new procurement guidelines from 1 July 2019, including obtaining a Statement of Tax Record.
As part of the ongoing work of the G20/OECD on Base Erosion and Profit Shifting, the OECD has recently released the Program of Work to Develop a Consensus Solution to the Tax Challenges Arising from the Digitalization of the Economy.
Deloitte has recently published the results of its annual multinational survey regarding OECD’s Base Erosion and Profit Shifting (BEPS) initiative and the “Global Tax Reset.” Now in its sixth year, this survey identifies respondents’ views on the changing tax landscape, as well as the topics that were high on the agenda in 2018, such as the Multilateral Instrument (MLI), US Tax Reform and the ‘digital taxation’ debate.
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Explore the archive of Tax insights below. If you cannot find the Tax insight you are looking for or if you would like more information on particular topic please contact us on firstname.lastname@example.org.
20 May 2019 | Coalition Government returned: tax agenda
16 April 2019 | Understanding the post-election tax policies affecting business
16 April 2019 | The latest from Canberra
03 April 2019 | Federal Budget 2019-20
15 April 2019 | ATO publishes “in-part” guidance on Arm’s Length Debt Test
11 April 2019 | Australia and Israel: double tax treaty
09 April 2019 | RCF: Certainty restored, and some more questions
27 March 2019 | Multilateral Instrument: now in force in Australia
26 March 2019 | ATO guidance on inbound distributors
19 March 2019 | Tax Transparency Code: proposed increase in scope
20 February 2019 | Tax challenges of digitalisation: OECD paper released
2 September 2019 (Updated) | Black economy measures draw a wide net
18 October 2018 | ATO releases revised guidance on MAP – what does it mean for you?
27 September 2018 | Diverted profits tax: where are we now?
25 September 2018 | Can you identify your Reportable Tax Positions?
25 September 2018 | R&D Tax Incentive Bill introduced into Parliament
August 2018 | More headaches for more Significant Global Entities
21 June 2018 | Corporate residency test – ATO’s new approach
14 June 2018 | Senate Inquiry into corporate tax avoidance final report
20 February 2018 | GST withholding obligation for residential property purchasers
14 February 2018 | Resource Capital Fund decision
13 February 2018 | Foreign residents to be excluded from CGT main residence exemption
22 November 2017 | US Tax reform – What does it mean for Australia?
October 2017 | Clarity in financial reporting
7 September 2017 | Your tax affairs in the public spotlight
27th October 2016 | General purpose financial statements: the current state of play
14th December 2015 | Foreign resident CGT withholding regime
4th November 2015 | Deconstructing the Chevron Transfer Pricing Case
18th August 2015 | The Senate Inquiry Interim Report