Weekly Tax Highlights

Highlights to 26 July 2019

ATO Documents


Law Companion Ruling
LCR 2019/3 OECD hybrid mismatch rules - concept of structured arrangement. This ruling finalises draft LCR 2018/D9.

Practical Compliance Guideline
PCG 2019/6 OECD hybrid mismatch rules - concept of structured arrangement. This guideline finalises draft PCG 2018/D9.

Other news


OECD releases latest results on preferential regimes

On 19 July the Inclusive Framework on BEPS approved the latest results of reviews of jurisdictions’ domestic laws in furtherance of BEPS Action 5 on Harmful Tax Practices. In respect of Australia, the conduit foreign income regime was considered not harmful with no harmful features. In relation to the offshore banking unit (OBU) regime, it was noted that this was in the process of being amended and that potentially harmful features will be addressed.

Tax cases


SDRQ and FCT [2019] AATA 2003

The AAT allowed the taxpayer company to claim a capital loss on the sale of shares in one related company but disallowed the capital loss on the sale of shares in another related company, having regard to the market values of the related companies’ shares at the time of acquisition and disposal.

Progress of legislation


As at 26.07.19
Parliament resumed on 22 July 2019.

Bill

Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019

Description  

Prevent small business CGT concessions from being available for partner assignments; extend anti-avoidance rule for closely held trusts to include family trusts that undertake circular trust distributions; deny deductions relating to holding vacant land; ATO disclosure of business tax debts to credit reporting bureaus; prevent salary sacrifice from reducing SG contributions; electronic invoicing implementation; TOFA amendments

Status

Introduced into the House of Reps 24.07.19.

Bill

Treasury Laws Amendment (2018 Superannuation Measures No 1) Bill 2019

Description

Reintroduces lapsed Bill containing superannuation measures.  Measure to provide one-off amnesty for employers not meeting their superannuation obligations included in lapsed Bill have not been included.

Status

Introduced into the House of Reps 24.07.19.

Bill

Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019

Description

Reintroduces lapsed Bill to prohibit creditor-defeating dispositions of company property; improve accountability of resigning directors; allow Commissioner to collect estimates of anticipated GST liabilities; make company directors personally liable for GST; authorise Commissioner to retain tax refunds.

Status

Introduced in the House of Reps 04.07.19.

Bill

Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2019

Description

Reintroduces measures in lapsed Bill to amend thin capitalisation asset valuation rules, change GST Act for online hotel bookings; remove luxury car tax for re-imported cars refurbished overseas. Measures to broaden SGE definition and better target the R&D Tax Incentive included in lapsed Bill have not been included.

Status

Introduced in the House of Reps 04.07.19.

Bill

Treasury Laws Amendment (2018 Measures No. 2) Bill 2019

Description

Reintroduces measures in lapsed Bill to establish the foundation for the Government's new Fintech framework. Makes a number of technical amendments to the Early Stage Venture Capital Limited Partnership, Venture Capital Limited Partnership and Tax Incentives for Early Stage Investor regimes.

Status

 Introduced in the House of Reps 04.07.19.

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