The week in review:
Section 160ZZSA deadline extended - The Commissioner of Taxation has extended the deadline for completion of s160ZZSA testing by public entities in relation to the 20 January 1997 test time to 30 June 1998. Broadly, this CGT provision operates to deem a company's pre-CGT assets as having been acquired after CGT was introduced, where there has been a substantial change in shareholders.
Trust losses - The trust loss legislation received Royal Assent on 16 April 1998. This means that affected taxpayers until 15 August 1998 to lodge amended income tax returns to reflect the new trust loss rules without incurring penalties or interest.
New strategy to tackle cash economy - The Commissioner of Taxation announced that a compliance model that complements the Taxpayer's Charter will be introduced as a new approach to dealing with the cash economy.
Progress of legislation - The following Bills received Royal Assent on 16 April 1998:
- Taxation Laws Amendment Bill (No. 5) 1997
- Taxation Laws Amendment (Trust Loss and Other Deductions) Bill 1997
The following Bills received Royal Assent on 17 April 1998:
- Medicare Levy Consequential Amendment (Trust Loss) Bill 1997
- Commonwealth Places (Consequential Amendments) Act 1998
- Commonwealth Places (Mirror Taxes) Act 1998
- Commonwealth Places Windfall Tax (Collection) Act 1998
- Commonwealth Places Windfall Tax (Imposition) Act 1998
- The Medicare Levy Amendment Bill (No. 2) 1997
Millennium Bug expenses - CTA submission - The Corporate Tax Association("CTA") has made a submission to the Treasurer and the Australian Taxation Office regarding the deductibility of the Year 2000 (millennium bug) costs. The CTA considers that typical millennium bug expenses are on revenue account and tax deductible.
Medical practitioner's legal expenses deductible - The Federal Court has held that legal expenses incurred by a medical practitioner in defending criminal charges are deductible.
Infrastructure borrowings tax offset scheme - The Tax Commissioner calledfor applications for the Infrastructure Borrowings Tax Offset Scheme. The scheme aims to encourage private sector investment in public land transport infrastructure by reducing financing costs associated with infrastructure projects.
Changes to Australian Taxation Office administration of sales tax - There will be a phased introduction of the new arrangements to combat sales tax fraud in the personal computer industry (new Part 7A of the Sales Tax Assessment Act 1992). The first phase is a process for importers, dealers and manufacturers to apply to the Tax Office for accreditation.
For further information, contact:
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Tel No: +61 29 28 57 777 Fax No: +61 29 26 18 777 E-mail: Click Contact Link
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