06 Dec 2019 | Riposte | Real Estate | Projects & Infrastructure | International

ATO guidance on the revised sovereign immunity and foreign pension fund exemptions

On 4 December 2019 the ATO released LCR 2019/D4, its draft ruling on the significant changes to sovereign immunity and the withholding tax exemption for superannuation funds for foreign residents.

29 Nov 2019 | Riposte | Energy & Resources | Projects & Infrastructure | Corporate and Mergers & Acquisitions

Are wages deductible?

It always comes as a surprise when some fundamental question of tax law, which seemed to be well settled, suddenly becomes controversial. In this case, the controversy stems from ATO’s Draft Tax Ruling TR 2019/D6.

15 Nov 2019 | Riposte | Corporate and Mergers & Acquisitions | International | Projects & Infrastructure

Update: Economic infrastructure staples tax concession

Despite the recent media hype in respect of this measure, the ‘Draft Guidance Note’ released by Treasury on 14 November 2019 essentially summarises the process of applying for the ‘approved economic infrastructure facility exception’ which was legislated in April 2019 as part of the staples integrity rules.

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24 Jul 2019 | Riposte | International | Real Estate | Projects & Infrastructure | Private Equity | Private Wealth

Investment in the US by superannuation funds and through LPs

The US 2017 tax reform included less noticed changes including one relating to foreign partners in LPs investing in the US. An important change in relation to investment by foreign pension funds in US real estate has also been developing over recent years. This Riposte briefly outlines recent important developments on these matters and the problems that can arise when they come together.

26 Jun 2019 | Riposte | Projects & Infrastructure | Real Estate

Update: Staples Legislation - ATO releases Draft Law Companion Ruling

With three business days before 30 June 2019, being the last day for entities subject to a cross staple arrangement to make a choice that transitional relief applies (Transitional Relief Choice), the ATO has released draft Law Companion Ruling LCR 2019/D2 in relation to ‘Non concessional MIT income’ (NCMI), to assist taxpayers in navigating the staples legislation enacted on 5 April 2019 (Staples Legislation).

15 May 2019 | Riposte | Energy & Resources | Projects & Infrastructure

Update: Sufficient clarity on ‘sufficient influence’?

Greater clarity on the law around ‘sufficient influence’ and ‘associates’ should be a step closer as today the High Court of Australia has granted BHP’s application for special leave to appeal the decision from the Full Federal Court.

28 Feb 2019 | Riposte | Projects & Infrastructure

Transferred assets and customer contributions – the VPN decision

On 7 February 2019, Moshinsky J handed down his judgment in the Federal Court decision of Victoria Power Networks Pty Ltd v Commissioner of Taxation [2019] FCA 77. The case concerned the assessability of customer contributions ‘received’ in cash or ‘gifted’ assets by electricity distributors in the VPN group for ‘uneconomic’ connections – being connections where the distributor’s ‘incremental revenue’ would not exceed its ‘incremental cost’ from the connection in present value terms. The ‘non-cash business benefit’ rules in section 21A considered in this case are relevant in a broader range of scenarios.

18 Feb 2019 | Riposte | Projects & Infrastructure

Subject to Legal Professional Privilege?

For some time there has been a divergence of opinion between the Australian Taxation Office (ATO) and taxpayers (and their advisers) as to the scope of the common law privilege that attaches to communications between a lawyer and their client for the purpose of providing legal advice, commonly referred to as Legal Professional Privilege (LPP).

01 Feb 2019 | Riposte | Energy & Resources | Projects & Infrastructure

Sufficient clarity on ‘sufficient influence’?

On 29 January 2019, the Full Federal Court decided (by 2:1 majority) that the Australian and UK head entities in the BHP Billiton dual listed companies (DLC) structure “sufficiently influence” each other and are therefore s.318 “associates”.

30 Jul 2018 | Tax Brief | Real Estate | Projects & Infrastructure

Stapled Structure Integrity Measures – Revised Exposure Draft

On 26 July 2018, the Government released revised draft legislation to give effect to various announced integrity measures aimed primarily at stapled groups. In this Tax Brief we focus on the changes from the original draft.

Tax Brief 30 July 2018 - Stapled Structure Integrity Measures – Revised Exposure Draft (222 kb)

29 Jun 2018 | Riposte | Real Estate | Projects & Infrastructure

Treasury consultation on integrity measures to access transitional relief from stapled structures changes

Treasury released a proposal paper seeking feedback on proposed integrity rules which must be satisfied to access the 7 and 15 year transitional relief from the proposed tax changes to the MIT withholding regime announced in the 17 May 2018 “Stapled Structures” Exposure Draft.

18 May 2018 | Riposte | Projects & Infrastructure

Stapled Structures Exposure Draft

Treasury has released the much anticipated Exposure Draft to implement its announcement of 27 March 2018 of a package of tax measures to address the perceived sustainability and tax integrity risks posed by "stapled structures". The Exposure Draft is subject to a two week consultation period ending on 31 May 2018.This Riposte focusses on the Exposure Draft from an infrastructure perspective.

27 Mar 2018 | Riposte | Projects & Infrastructure

Treasury Announcement on ‘Stapled Structures’ – An infrastructure perspective

Following public and targeted consultation, Treasury has today announced a package to address the perceived integrity risks arising from the use of "stapled structures". The package significantly limits tax concessions currently available for foreign investors in receipt of passive income, but contains certain transitional rules and a concession for new investment in economic infrastructure assets approved by the Government.

23 Oct 2017 | Riposte | Real Estate | Projects & Infrastructure

Commissioner refreshes long term construction contract ruling

As part of Project Refresh the Commissioner has released Taxation Ruling TR 2017/D8 which is a rewrite of Taxation Ruling IT 2450 and related taxation determinations dealing with the income tax treatment of long term construction contracts.

27 Mar 2017 | Riposte | Real Estate | Projects & Infrastructure

Stapled structures consultation paper

The attack on stapled structures continues with the release of a consultation paper looking at stapled structures, the taxation of real property investments and the re-characterisation of trading income.

13 Feb 2017 | Tax Brief | Projects & Infrastructure

Draft infrastructure & privatisation framework

The ATO has released a draft framework which sets out the ATO’s overall non-binding position on a number of infrastructure related tax issues.

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31 Jan 2017 | Tax Brief | Projects & Infrastructure

TA 2017/1: impact on infrastructure groups

Stapled infrastructure groups need to look closely at their cross staple arrangements or risk raising the ire of the ATO.

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11 Oct 2016 | Riposte | Real Estate | Financial Services | Projects & Infrastructure

Related schemes & 974-80 ED at last

Exposure draft legislation intended to address the Board of Taxation’s recommendations concerning s.974-80 and the related schemes provisions in the debt/equity rules has finally been released. Do the proposals provide clarity to taxpayers who are not on all fours with the examples?

22 Feb 2016 | Riposte | Projects & Infrastructure

Treasurer announces tax focussed changes to FIRB approval process

The Treasurer today announced that the Government will impose new conditions on new applications for Foreign Investment Review Board (FIRB) approval.

17 Feb 2016 | Riposte | Projects & Infrastructure

Infrastructure - where is the risk?

The ATO has circulated a document for consultation purposes which highlights certain infrastructure related issues it considers high risk from a compliance perspective. The time is right for industry participants to consider mitigating their risks.

10 Nov 2015 | Riposte | Projects & Infrastructure

ATO infrastructure framework

The ATO has released helpful but non-binding guidance on the income tax and GST consequences for public private partnerships adopting securitised license structures. Will it be able to keep pace with changing PPP structures?

26 Apr 2013 | Tax Briefs | Corporate and Mergers & Acquisitions | Projects & Infrastructure

Tax Losses from Infrastructure Projects

This Tax Brief discusses draft legislation explanatory memorandum and rules that will be implemented as a legislative instrument recently released concerning the special treatment of tax losses of infrastructure projects.

Tax Losses from Infrastructure Projects (119 kb)

22 Nov 2011 | Tax Briefs | Projects & Infrastructure

Losses from Infrastructure Projects

The Government has released a Discussion Paper outlining the design of new rules to govern the treatment of losses arising from infrastructure projects considered to be of national significance. This Tax Brief examines the current plans for how these rules will operate.

Losses from Infrastructure Projects (131 kb)

23 Aug 2007 | Tax Briefs | Real Estate | Projects & Infrastructure

New Tax Measures for Property and Infrastructure Projects

This Tax Brief discusses a bill introduced into Parliament by the Government on 16 August 2007, that enacts the tax exempt lessee rulse in Division 250.

New Tax Measures for Property and Infrastructure Projects (134 kb)

04 Oct 2006 | Tax Briefs | Projects & Infrastructure

High Court Confirms Deductibility of Concession Fees - FCT v CityLink Melbourne Limited (Transurban)

In FCT v CityLink Melbourne Ltd the High Court held that annual concession fees payable by CityLink to the State government are deductible as they accrue. Greenwoods & Freehills and Freehills acted for CityLink Melbourne Limited in relation to the Melbourne City Link project and this litigation. This Tax Brief outlines some of the case's key conclusions.

High Court Confirms Deductibility of Concession Fees - FCT v CityLink Melbourne Limited (Transurban) (216 kb)

05 Nov 2004 | Tax Briefs | Projects & Infrastructure

Federal Court Repairs Blackhole in the Bitumen

This Tax Brief considers the Full Federal Court's decision in Transurban City Link Limited v FCT. The issue was whether annual Concession Fees were allowable deductions to the taxpayer.

Federal Court Repairs Blackhole in the Bitumen (221 kb)