Net closes on tax cheats
The Australian Taxation Office (“ATO”) is making it harder for people in
business who deliberately use cash transactions to hide income and evade tax
obligations – making it fairer for everyone. Read more…
Tax Amendment Bill Nos 7 and 8 await Assent
Tax Laws Amendment (2011 Measures No 7) Bill 2011 and Tax Laws Amendment (2011 Measures No Eight.) Bill 2011 have been passed by Parliament and await Royal Assent.
CGT and tax amendments in Tax Bill (No 9) 2011
Tax Laws Amendment (2011 Measures No 9) Bill 2011 has introduced CGT rollover and demerger amendments, as well as amendments re deductible gift recipients, and miscellaneous amendments.
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Div 7A and deemed dividends
The Tax Office has issued Practice Statement Law Administration PS LA 2011/29 concerning Div 7A and the Commissioner’s discretion to disregard deemed dividends under s 109RB of the ITAA 1936. Section 109RB confers on the Commissioner a discretion to disregard a deemed dividend that arises under Div 7A where a taxpayer inadvertently triggers a deemed dividend as a result of an honest mistake or inadvertent omission.
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Reform of taxation of trusts
The Assistant Treasurer has released a consultation paper that explores the current issues impeding the effective operation of Div 6 of Pt III of the ITAA 1926 as well as those hampering the effective taxation of trusts more broadly. The paper also outlines a number of options for reform, ranging from minor changes to the current operation of Div 6 to the introduction of a new model for the taxation of trust income.