This page displays a list of completed public advice and guidance issues for the 2019 year.
[3765] Transfer pricing rules and debt/equity tests
Purpose
To provide the Commissioner’s view on whether Division 974 of the Income Tax Assessment Act 1997 can limit the operation of Subdivision 815-B of the Income Tax Assessment Act 1997.
Outcome
TD 2019/10 published on 3 July 2019
[3796] Consolidation – tax offsets
Purpose
To replace ATO ID 2015/6 with a taxation determination that provides advice more generally on how a joining entity's non-refundable carried forward tax offsets may be accessed and utilised by the head company of the joined consolidated group.
Outcome
After completing our review of this issue, we do not propose to publish any further guidance. The ATO view on this issue in ATO ID 2015/6 remains available on the Legal database.
[3814] Meaning of ‘alteration, extension or improvement’ in Division 43 of the Income Tax Assessment Act 1997
Purpose
To assist taxpayers in determining whether there is an extension, alteration or improvement for the purposes of the capital works deductions. This in turn may have implications for the deductibility of those expenses under another provision of the ITAA 1997.
Outcome
We are not proceeding with this advice product. After review, we no longer consider a draft Taxation Ruling to consolidate the existing ATO view documents on this issue is a priority. The ATO view documents on this issue remain available on the Legal database.
[3840] Deductibility of seismic data expenses under section 40-25 of the ITAA 1997
Purpose
To clarify deductions for mining industry service providers who license seismic data on a non-exclusive basis.
Outcome
TR 2019/4 published on 18 September 2019
[3846] Business continuity text – carrying on a similar business
Purpose
To provide guidance on how the new 'similar business test' introduced by the Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Act 2019 will apply in practice.
Outcome
LCR 2019/1 published on 22 May 2019.
[3870] GST – supplies connected with Australia (intangibles)
Purpose
To provide the Commissioner’s views on when a supply of intangibles will be connected with the indirect tax zone.
Outcome
GSTR 2019/1 published on 11 December 2019
[3877] What constitutes ‘use’ for the purposes of section 40-80 of the ITAA 1997?
Purpose
To outline what constitutes ‘use’ (and potentially first use) of a mining, quarrying and prospecting right for the purposes of subsection 40-80(1) of the ITAA 1997.
Outcome
TD 2019/1 published on 13 February 2019
[3885] Trust splitting
Purpose
To provide the Commissioner's view on the tax implications of arrangements that are commonly referred to as ‘trust splitting’, in particular whether splitting the trust causes capital gains tax event E1 to occur.
Outcome
TD 2019/14 published on 13 December 2019
[3886] Taxpayer alerts
Purpose
To provide updated guidance to staff on the process for initiating and issuing a Taxpayer Alert.
Outcome
PS LA 2008/15 published on 16 January 2019
[3888] Carrying on a business
Purpose
To provide advice on when a company carries on a business, including targeted examples explaining the Commissioner's view on whether a company carries on business in common factual scenarios.
Outcome
TR 2019/1 published on 5 April 2019
[3893] Fringe benefits tax – taxi travel exemption
Purpose
To provide employers with guidance on the Commissioner's compliance approach for the 2019 FBT year in determining whether travel undertaken by an employee in a ride-sourcing vehicle is taxi travel for the purposes of the FBT taxi travel exemption
Outcome
Following consideration of the issue and avenues available under the law, the proposed practical compliance guideline will not be proceeding. Our position on the taxi travel exemption is contained in Chapter 20 of the Fringe benefits tax – a guide for employers.
[3900] Related party financing – derivatives
Purpose
To provide the risk indicators associated with a financing arrangement, related transaction or contract entered into with cross-border related parties involving 'derivatives'.
Outcome
Schedule 2 to PCG 2017/4 published on 27 November 2019.
[3903] Treaty relief on dividends and interest for dual resident individuals
Purpose
To provide clarification of the calculation of the maximum Australian tax chargeable (and any corresponding amount of tax relief available) under a tax treaty on the dividend and interest income of a dual resident individual whose residency is tie broken solely to a foreign country for tax treaty purposes.
Outcome
We are not proceeding with this advice. After review, it is no longer considered a priority.
[3904] Attribution of wine equalisation tax
Purpose
To convert existing PS LA 2013/1 (G/A) Attribution of wine equalisation tax (WET) where contracts include a retention of title clause and the purchaser sells or otherwise uses the wine before title passes into a practical compliance guideline.
Outcome
PCG 2019/3 published on 17 April 2019
[3906] Thin capitalisation – asset valuations
Purpose
This proposed practical compliance guideline was to provide the ATO's compliance approach to taxpayers’ recognition and valuation of assets for the purposes of the thin capitalisation regime in Division 820 of the Income Tax Assessment Act 1997.
Outcome
We are not proceeding with this advice. Following passage of Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Act 2019, this product is no longer required.
[3907] Thin capitalisation – mining rights recognition and revaluation
Purpose
This proposed taxation determination was to provide the ATO view relating to the classification and revaluation of a mining right in accordance with accounting standards when applying the thin capitalisation rules contained within Division 820 of the ITAA 1997.
Outcome
We are not proceeding with this advice. Following passage of Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Act 2019, this product is no longer required.
[3909] Thin capitalisation – internally generated intangibles
Purpose
This proposed taxation determination was to provide the ATO view relating to the recognition and revaluation of internally generated intangible assets in accordance with accounting standards when applying the thin capitalisation rules contained within Division 820 of the ITAA 1997.
Outcome
We are not proceeding with this advice. Following passage of Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Act 2019, this product is no longer required.
[3911] 'In Australia' requirement – deductible gift recipients
Purpose
To provide the Commissioner's view on the legal and practical operation of conditions in Division 30 and Division 50 of the Income Tax Assessment Act 1997 which require that:
- a body seeking deductible gift recipient status be 'in Australia’
- an entity seeking income tax exemption must have a ‘physical presence in Australia, and to that extent, incur its expenditure and pursue its objectives principally in Australia’.
Outcome
TR 2019/6 published on 18 December 2019
[3912] Fringe benefits tax – registered religious institutions
Purpose
To provide the Commissioner's view on when benefits provided by a registered religious institution to a religious practitioner are exempt from fringe benefits tax.
Outcome
TR 2019/3 published on 19 June 2019
[3913] Thin capitalisation – what type of costs are debt deductions within the scope of subparagraph 820-40(a)(iii) of the ITAA 1997?
Purpose
To provide the ATO view on what costs are considered to be directly incurred in relation to a taxpayer’s debt capital that are within the scope of subparagraph 820-40(1)(a)(iii) for the purposes of applying the thin capitalisation rules contained within Division 820 of the Income Tax Assessment Act 1997.
Outcome
TD 2019/12 published on 17 July 2019
[3915] GST – improvements on the land
Purpose
Whether there are improvements on the land is relevant in establishing whether concessional GST treatment is available for a supply of land (by way of sale or long-term lease) made by the Commonwealth, a State or Territory. This Addendum provided clarity on the ATO view on this point.
Outcome
GSTR 2006/6 was updated on 14 August 2019
[3918] Retirement villages – CGT event L5
Purpose
To provide guidance on when CGT event L5 happens for taxpayers continuing to rely on TR 94/24 (withdrawn in April 2000) when a subsidiary that owns or develops a retirement village exits the group.
Outcome
After consultation with the Retirement Living Council, we are not proceeding with this guidance.
[3919] Retirement villages – exit ACA calculation
Purpose
To outline the ATO's administrative approach to address practical difficulties relating to the interaction of the consolidation regime and the treatment of certain liabilities under our taxation rulings when a tax consolidated group sells their interests in a subsidiary member that owns a retirement village
Outcome
PCG 2019/4 published on 12 June 2019
[3920] Consolidation churning measure
Purpose
To provide advice on the application of section 716-440 of the Income Tax Assessment Act 1997 which addresses the interaction between the non-resident capital gains tax rules and the consolidation regime in respect of certain group structures.
Outcome
LCR 2019/2 published on 17 July 2019
[3934] Pension tax bonuses
Purpose
To provide the ATO's compliance approach for large APRA-regulated super funds in respect of pension tax bonuses not included in members’ opening account balances on commencement of a pension.
Outcome
PCG 2019/7 published on 2 October 2019
[3936] Disposal of dwellings acquired from a deceased estate
Purpose
To outline the:
- circumstances in which trustees or beneficiaries of a deceased estate can manage their tax affairs as if the Commissioner had exercised the discretion to allow a period of longer than two years to sell a dwelling acquired from a deceased estate
- factors the Commissioner will consider where taxpayers request the exercise of the discretion.
Outcome
PCG 2019/5 was published on 27 June 2019
[3937] Base rate entities and base rate entity passive income
Purpose
To provide advice on the general scheme of the new law in relation to base rate entities, what constitutes base rate entity passive income and how to calculate a corporate tax entity’s corporate tax rate for imputation purposes.
Outcome
LCR 2019/5 published on 13 December 2019
[3939] Corporate collective investment vehicles
Purpose
To provide guidance on the proposed new law in relation to CCIVs, including the:
- introduction of CCIVs and their tax treatment
- establishment and reporting obligations for CCIVs to the ATO
- information for potential Australian and foreign investors (and their intermediaries) on tax obligations when investing in a CCIV.
Outcome
At this stage, we are not proceeding with this guidance until the Corporate Collective Investment Vehicle Bill 2019 has received royal assent.
[3940] Inbound supply chains
Purpose
To provide our compliance approach to the transfer pricing outcomes associated with the following activities of inbound distributors:
- distributing goods purchased from related foreign entities for resale
- distributing digital products or services where the intellectual property in those products or services is owned by related foreign entities.
Outcome
PCG 2019/1 published on 13 March 201
[3950] OECD hybrid mismatch rules
Purpose
To provide advice in relation to the terms 'structured arrangement' and 'party to the structured arrangement' set out in section 832-210 of the Income Tax Assessment Act 1997.
Outcome
LCR 2019/3 published on 24 July 2019.
Purpose
To provide practical guidance in relation to the term ‘structured arrangement' in section 832-210 of the Income Tax Assessment Act 1997.
Outcome
PCG 2019/6 published on 24 July 2019. Work continues on other aspects of the OECD hybrid mismatch rules.
See Advice under development - international issues.
[3951] GST – credit card issuing business
Purpose
To set out the Commissioner's views on how to apply paragraph 11-52(2)(a) of the A New Tax System (Goods and Services Tax) Act 1999 to acquisitions in a credit card issuing business.
Outcome
GSTR 2019/2 published on 18 December 2019
[3954] Expansion of the taxable reporting system – road freight, security, investigation or surveillance and IT services
Purpose
To provide the ATO view of the extension of the taxable payments reporting system to road freight, security, investigation, surveillance and information technology services.
Outcome
LCR 2019/4 published on 14 August 2019
[3959] CGT cost base – rental property
Purpose
To provide proposed practical guidance in the situation where a rental property is sold and depreciation has been claimed.
Outcome
We are not proceeding with this practical compliance guideline at this point in time.
[3960] Non-arm's length income
Purpose
To provide the ATO's view in respect of the amendments in the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018, concerning the application of the non-arm's length income provisions where a trustee incurs non-arm's length expenditure under a scheme.
Outcome
Draft LCR 2018/D10 published for public comment on 19 December 2018 was withdrawn as a result of the Treasury Law Amendment (2018 Superannuation Measures No.1) Bill 2018 having lapsed when the 45th Parliament was prorogued and the House of Representatives was dissolved on 11 April 2019.
See current item [3984] Non-arm's length expenditure.
[3961] Total superannuation balance
Purpose
To provide the ATO's view of amendments in Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018, once passed, which require the outstanding balance of a borrowing made under a limited recourse borrowing arrangement in certain circumstances to be included in an individual's total superannuation balance.
Outcome
The draft consolidation of LCR 2016/12 published for public comment on 19 December 2018 was withdrawn as a result of the Treasury Laws Amendment (2018 Superannuation Measures No.1) Bill having lapsed when the 45th Parliament was prorogued and the House of Representatives was dissolved on 11 April 2019.
[3963] Division 7A – interposed entity rules
Purpose
TD 2018/13 was planned to be amended to provide a further example.
Outcome
After review, we no longer propose to publish this Addendum. TD 2018/13 remains the ATO view and is available on the Legal database.
[3967] Definition of financial intermediary business
Purpose
To provide advice on when a company will be considered to have a business whose income is derived principally from the lending of money for the purposes of paragraph (b) of the definition of ‘financial intermediary business’ in subsection 317(1) of the Income Tax Assessment Act 1936.
Outcome
TD 2019/8 was published on 22 May 2019
[3969] Fuel tax – environmental criteria
Purpose
To provide the ATO view on when the environmental criteria in section 41-25 of the Fuel Tax Act 2006 will have been met.
Outcome
FTD 2019/1 published on 11 December 2019
[3975] Super benefits in breach of rules
Purpose
To provide the ATO view of the Administrative Appeals Tribunal decision in Wainwright and Commissioner of Taxation [2019] AATA 333 which considered the exercise of the discretion in subsection 304-10(4) of the Income Tax Assessment Act 1997.
Outcome
The Decision Impact Statement published on 25 July 2019. Work continues on further clarifying our approach.
See Advice under development - super issues.
[3977] Super guarantee – remission of penalty
Purpose
To provide guidelines to ATO staff on the imposition and appropriate remission of additional super guarantee charge, including the finalising of remission decisions and how the penalty concessions may apply.
Outcome
PS LA 2019/1 published on 5 December 2019
[3978] GST – providers of financial supplies
Purpose
To clarify areas of GSTR 2006/3 in response to comments raised through consultation on Goods and Services Tax Determination GSTD 2018/D1 Goods and services tax: determining the creditable purpose of acquisitions in a credit card issuing business and the draft amendment to Goods and Services Tax Ruling GSTR 2004/4 Goods and services tax: assignment of payment streams including under a typical securitisation arrangement.
Outcome
GSTR 2006/3 was updated on 18 December 2019.
[3979] GST – apportionment of acquisitions that relate to certain financial supplies
Purpose
To set out the ATO’s framework for how we assess the risk associated with apportionment methods used to determine the extent of creditable purpose of acquisitions that relate to certain financial supplies.
Outcome
PCG 2019/8 published on 18 December 2019
[3980] Employee share schemes – what is an 'employee share trust'
Purpose
To provide the Commissioner's interpretation of subsection 130-85(4) of the Income Tax Assessment Act 1997 on when a trust is an employee share trust for the purpose of an employee share scheme.
Outcome
TD 2019/13 published on 6 December 2019
This page displays a list of completed public advice and guidance issues for the 2019 year.