I have listed the Top 6 tax issues that are currently being consulted on with the Government, Board of Taxation or the Australian Taxation Office.
1. Repeal of the carbon tax and introduction of the Coalition’s Emissions Reduction Fund
The Government is consulting on draft legislation to carbon tax and seeking views on the alternative Emissions Reduction Fund including potential sources of low cost abatement, and on key design features such as auctions, baselines and contract arrangements.
2. Repeal of Section 25-90
The ATO is consulting with industry on what guidance may be needed to apply the law to financing arrangements for Australian multinational groups in the event Section 25-90 is repealed.
3. Debt and Equity Review
The Board of Taxation conducted consultation to review the current debt/equity rules in Division 974 of the ITAA 97.
4. Thin Capitalisation and Arm’s length Debt Review
The Board of Taxation conducted consultation with various stakeholders to review the thin capitalisation arm’s length debt test in Division 820 of the ITAA 97, and are exploring ways to make it easier to comply with and administer.
5. Foreign income tax offsets and application to superannuation funds
Technical issues arising from ATOID 2013/14 affecting the superannuation industry in practice is currently being consulted on.
6. Securitisation and thin capitalisation
The ATO withdrew draft TD 2012/D11 on Section 820-39 which would have adversely impacted certain securitisation structures in the infrastructure and property industry. Part IVA issues are now being considered by the ATO.