Weekly Tax Highlights - 2nd - 6th March 1998

Amendments to Trust Loss Bill before Parliament - lobbying continues - The Federal Government has proposed amendments to Taxation Laws Amendment (Trust Loss and Other Deductions) Bill 1997 dealing with the definition of "closely held", evidencing family trust or interposed entity elections and technical and transitional amendments. Meanwhile, lobbying continues to have the proposed trust loss provisions shelved. It has been put to the Government that the issue of trust losses should form part of the review of trusts undertaken as part of the Government's current tax reform deliberations.

Forgiven inter-company loan caught by s108 - The Federal Court has held that the forgiveness of an inter-company loan constituted the payment of a deemed dividend to the taxpayer under s108 of the Income Tax Assessment Act 1936 (Lonsdale Sand and Metal Pty Ltd v FCT).