Highlights to 5 April 2019
The 2019-2020 Federal Budget was released on 2 April 2019. Our Tax Brief outlines the main tax measures and what they will mean for Australian businesses.
TR 2019/1 Income tax: when does a company carry on a business?
Draft taxation determinations
TD 2019/D3 Income tax: in the definition of ‘financial intermediary business’ what is meant by ‘a business whose income is principally derived from the lending of money’?
TD 2019/D4 Income tax: can a company that carries on a business in a general sense as described in TR 2019/1 but whose only activity is renting out an investment property claim the CGT small business concessions in relation to that investment property?
Draft taxation ruling
TR 2019/D2 Income tax: thin capitalisation - the arm's length debt test
Draft law companion ruling
LCR 2019/D1 OECD hybrid mismatch rules - targeted integrity rule
Draft practical compliance guideline
PCG 2019/D1 Retirement villages: ATO compliance approach - exit allocable cost amount calculation at step 4 for certain resident liabilities under lease premium or loan/lease occupancy agreements
GST ruling – draft amendment
GSTR 2004/4DC1 Goods and services tax: assignment of payment streams including under a typical securitisation arrangement
CR 2019/23Income tax: Macquarie Group Limited – Macquarie Group Capital Notes 4
CR 2019/24 Income tax: Thinksmart Limited – return of share capital (ordinary shareholders)
CR 2019/25 Income tax: Thinksmart Limited – return of share capital (depositary interests)
CR 2019/26 Income tax: Members Equity Bank Limited – Series 2 Capital Notes
Decision impact statement
TAD 41 of 2017 H3/2018 Pintarich v Deputy Commissioner of Taxation
Stapled structure amendments receive Royal Assent
On 5 April, the Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2019 which implements integrity measures in relation to stapled structures, thin capitalisation, the withholding tax exemption for superannuation funds for foreign residents and the sovereign immunity tax exemption received Royal Assent.
FCT v Resource Capital Fund IV LP  FCAFC 51
The Full Federal Court has allowed the Commissioner’s appeal and held that profits made by two overseas private equity corporate limited partnerships on the sale of their shares in an Australian mining company were taxable in Australia, having regard to the source of the income and the US tax treaty.
Paule & Ors v FCT  FCA 394
The Federal Court has held that a capital gain made on the sale of shares was not a discount capital gain, following a series of roll-overs.
Progress of legislation
As at 05.04.19