Tax System Improvement

Tax System Improvement

Align Fringe Benefit Tax Year with Income Tax Year

For small businesses, calculating expenses that confer fringe benefits using a period that overlaps accounting periods adds an additional compliance burden. By aligning the two periods, a business can use their year-end figures to calculate their expenses for FBT

Submitted by (@markcaldwell)
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Tax System Improvement

ESS and Interests in Foreign Vehicles

Need further guidance from the ATO with respect to Employee Share Schemes (ESS) and whether interests in certain common kinds of foreign vehicles (such as a limited liability company) qualify as 'shares' or 'ordinary shares' under the ESS rules, in particular, subsections 83A-10(1) and 83A-45(2) of the ITAA 1997.

Submitted by (@moderatorboardoftaxationsecretariat)
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5 votes
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Tax System Improvement

Ability to appoint multiple public officers

Companies carrying on a business or deriving property income in Australia are required to have and must appoint a public officer for the company. Amongst other things, the appointed public officer is the only person who is entitled to sign the company tax returns. The legislation does not allow for the appointment of multiple public officers for a particular company. There should be opportunity to appoint more than one ...more »

Submitted by (@moderatorboardoftaxationsecretariat)
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4 votes
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Tax System Improvement

Main residence CGT special market value rule should be a choice

Section 118-192 of ITAA97 provides a special rule under which a main residence (if acquired after 20/8/96) is deemed to have been acquired at market value when it is first used to produce assessable income. Too many taxpayers don't get the valuation at the time (eg. because they thought they were going overseas for max 6 years so could use the absence choice, but ended up staying for 10 years) and there is no guidance ...more »

Submitted by (@robbie)
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Tax System Improvement

Exempt Current Pension Income and Actuary's Certificates

In order for income of a Superannuation fund to be treated as exempt current pension income (ECPI) and therefore be exempt from income tax, section 295-385 of the Income Tax Assessment Act 1997 requires the trustee of the fund to obtain an actuary's certificate. Obtaining such a certificate is burdensome both from a timing and compliance cost perspective. Propose a statutory formula be developed in place of this requirement. ...more »

Submitted by (@moderatorboardoftaxationsecretariat)
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Tax System Improvement

GST and Joint Ventures

GST law does not adequately deal with joint ventures (JVs) and in particular, the use of multiple JVs within the oil and gas industry. To reduce complexity and achieve a revenue neutral outcome, propose the amendment of Division 48 of the GST Act to allow commonly operated GST JVs and/or GST JVs involved in common project developments to form a GST Group. Alternatively, amend the existing GST JV provisions of Division ...more »

Submitted by (@moderatorboardoftaxationsecretariat)
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Tax System Improvement

tax transparency

Public tax transparency laws should be changed to require the ATO to publish current year accounting profit/loss extracted from the tax return as well as the current total turnover, taxable income and taxes payable figures. This should help in the public's understanding of company tax performance and reduce the chance of the current data being used in a misleading fashion. It also better aligns with what companies ...more »

Submitted by (@taxfacts)
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Tax System Improvement

Updating the Approved Stock Exchange List

The term "approved stock exchange" is used in various places throughout the income tax laws and affects, amongst other things, whether companies are "widely held" for the purposes of the tax laws. Ensure taxpayer certainty by updating the list of approved stock exchanges in Schedule 5 to the Income Tax Regulations 1997 so as to take account of acquisitions and/or name changes of stock exchanges previously on the list. ...more »

Submitted by (@moderatorboardoftaxationsecretariat)
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