Weekly Tax Highlights

Highlights to 14 December 2018

ATO documents


Class rulings
CR 2018/60 Income tax: Wesfarmers Limited - demerger of Coles Group Limited - employee share schemes
CR 2018/59 Income tax: Wesfarmers Limited - demerger of Coles Group Limited   
CR 2018/58 Income tax: Device Technologies Australia Pty Ltd adjustment to employee options       
CR 2018/57 Income tax: Rio Tinto Limited - off-market share buy-back
CR 2018/56 Income tax: Charles Darwin University Professional Staff Voluntary Early Retirement Scheme 2018
CR 2018/55 Income tax: Charles Darwin University Academic Staff Voluntary Early Retirement Scheme 2018 12 December 2018 

Product Rulings
PR 2018/15 Income tax: taxation consequences for a Customer entering into a Prepay and Grow Agreement with Ruralco
PR 2018/14 Income tax: taxation consequences of investing in the Macquarie Tailored Portfolio Collar Facility

Other news


ATO releases 2016-17 corporate tax transparency report
On 13 December, the ATO released the fourth annual report on corporate tax transparency based on the 2016-17 income tax returns of some of the largest corporate entities operating in Australia.

ATO releases details of large corporate groups income tax gap
The ATO has released its estimate of the 2015-16 net income tax gap for large corporate groups. The large corporate groups income tax gap is the difference between the total amount of income tax collected and the amount the ATO estimates would have been collected if every one of these taxpayers was fully compliant. For 2015–16, the ATO estimates the net income tax gap to be $1.8 billion or 4.4% of tax payable for this group, which the ATO considers primarily reflects differences in the interpretation of complex areas of tax law.

Progress of legislation

As at 14.12.18

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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