Weekly Tax Highlights

Highlights to 30 November 2018

ATO documents

Tax Ruling Draft Update

TR 2005/5DCIncome tax: ascertaining the right to tax United States (US) and United Kingdom (UK) resident financial institutions under the US and the UK Taxation Conventions in respect of interest income arising in Australia

Class rulings

CR 2018/49 Income tax: scrip for scrip roll-over: acquisition of units in SGH Professional Investor Micro Cap Trust by SGH Emerging Companies Fund

CR 2018/50 Income tax: Insurance Australia Group Limited - Distribution and Share Consolidation

CR 2018/51Income tax: Folkestone Limited – Scheme of Arrangement and Special Dividend

Taxpayer Alert

TA 2018/3 GST implications of certain development lease arrangements

Tax cases

 

Burton v Federal Commissioner of Taxation [2018] FCA 1857

On 27 November, the Federal Court confirmed the ATO’s position that a foreign income tax offset (FITO) is reduced to the extent that the assessable portion of a foreign capital gain is reduced by the CGT discount and/or an unrelated capital loss.

Other news

2019-20 Federal Budget to be delivered on 2 April 2019

The Prime Minister has announced that the 2019-20 Federal Budget will be delivered on Tuesday, 2 April 2019, ahead of the Federal Election to be held before 18 May 2019.

Lodgement deferral for Country-by-Country reporting

The ATO has announced that it will be providing a lodgement deferral until 15 January 2019 for significant global entities who are required to lodge their country-by-country (CbC) reporting for the year ended 31 December 2017.

 

Progress of legislation

As at 30.11.18

Bill

Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018

Description

Implements integrity measures in relation to stapled structures, thin capitalisation, withholding tax exemption for superannuation funds for foreign residents and the sovereign immunity tax exemption.

Status

Introduced into House of Reps 20.09.18.

Bill

Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018

Description

Broadens the SGE definition, amends the thin capitalisation asset valuation rules, better targets the R&D Tax Incentive, changes the GST Act in relation to online hotel bookings and removes the luxury car tax for re-imported cars refurbished overseas.

Status

Introduced into House of Reps 20.09.18.

Bill

Treasury Laws Amendment (2018 Measures No 5) Bill 2018

Description

Technical amendments to the AMIT regime; extending deductible gift recipient status to entities promoting Indigenous languages.

Status

Introduced into the Senate 18.10.18.

Bill

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

Description

Increased penalties and a one off amnesty for employers not meeting their superannuation obligations.

Status

Introduced into Senate 25.06.18.

Bill

Treasury Laws Amendment (2018 Measures No. 4) Bill 2018

Description

Implements the Government’s Superannuation Guarantee (SG) integrity package, extends Single Touch Payroll, and changes Super Fund reporting requirements.

Status

Introduced into Senate 25.06.18.

Bill

Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 2) Bill 2018

Description

Implements new rules for foreign residents owning Australian housing, technical amendments to streamline the foreign investment framework and introduces tax incentives to boost investment in affordable housing.

Status

Introduced into Senate 19.03.18.

Bill

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

Description

Establishes 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 into Senate 26.06.18.

Bill

Medicare Levy Amendment (National Disability Insurance Scheme Funding) Bill 2017

Description  

Fund the NDIS by amending the Medicare Levy Act 1986 to increase the Medicare levy rate from 2 to 2.5% of taxable income for the 2019-20 income year and later income years. Given the Government’s announcement that the increase to the Medicare Levy will be scrapped, this Bill may not proceed

Status

Introduced into Senate 13.11.17.

Bill

Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017

Description

Similar business test; Effective life assessment on intellectual property.

Status

Introduced into Senate 22.6.17.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package.

Status

Introduced into Senate 23.11.16.

 

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