Weekly Tax Highlights - 9th - 13th March 1998

Shareholder/employee benefits subject to FBT and not a deemed dividend - The Assistant Treasurer announced that the Government will amend the proposed legislation dealing with deemed dividends from private companies to ensure that payments made to shareholders in their capacity as employees will not be subject to the new provisions and will continue to be dealt with under the Fringe Benefits Tax legislation.

Reforms to treatment of super on marriage breakdown - The Prime Minister announced reforms to the treatment of superannuation in the event of marriage breakdown. The objectives of the reforms are: superannuation should be included in the division of marital property; there must be clear rules for valuing superannuation; women and men should be encouraged to settle their own affairs, equipped with full information; reforms should be consistent with retirement incomes policy and the type of superannuation fund; and the reforms should minimise the complexity and cost