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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Tax System Improvement

Overhaul Interest on Overpayments

The Interests on Overpayments (IOP) regime needs to be overhauled. The current system is difficult to understand and administratively complex.

Submitted by (@moderatorboardoftaxationsecretariat)
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Tax System Improvement

Safe harbour for long-life depreciating assets in Div 40

Introduce a general safe harbour effective life for long-life depreciating assets in Division 40, much like the small business general asset pool (say 20 years).

Submitted by (@moderatorboardoftaxationsecretariat)
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Tax System Improvement

Review FBT compliance costs - please!

According to a Corporate Tax Association survey of its members, Fringe Benefits Tax (FBT) is a significant compliance burden on taxpayers and is in need of reform. Whilst there have been some compliance safe harbours developed for FBT log books, other areas need legislative reform to reduce the cost of compliance with little cost to the revenue. Some simple fixes would include: > Allowing for consolidation or grouping ...more »

Submitted by (@corporate.tax.association)
2 comments

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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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Tax System Improvement

FBT, GST and Uber travel.

The recent Federal Court case on the GST treatment of Ubers decided to adopt a common sense definition of taxi and thus have the same GST rules apply to taxi and Uber travel. However the FBT law defines a taxi as a "motor vehicle that is licensed to operate as a taxi". It would seem therefore on a literal reading of the FBT law, that the exemption given to certain taxi related travel given to employees does not apply ...more »

Submitted by (@corporate.tax.association)
3 comments

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4 votes
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Tax System Improvement

Correcting GST Errors

The current time and value limits for correcting prior period GST debit errors range from 12 - 18 months and $10K to $450K depending on GST turnover. Where these limits are exceeded however, taxpayers are required to correct every impacted Business Activity Statement (BAS) lodged in the previous four years. This increases compliance costs for both taxpayers and the ATO. Propose therefore that both the time and value limits ...more »

Submitted by (@moderatorboardoftaxationsecretariat)
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Tax System Improvement

Guidance on Research and Development

There is currently little guidance provided to the mining industry on Research and Development (R&D) and its interactions with the tax system. Propose that the ATO provide consistent levels of R&D guidance/advice across all industries in order to provide clarity and certainty.

Submitted by (@moderatorboardoftaxationsecretariat)
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Tax System Improvement

Unnecessary tax return form item

Total salary and wages expenses is one of the financial information disclosures on income tax returns of entities carrying on business. This disclosure is unnecessary because the ATO already gets this info from PAYGW disclosures on the business's BAS. Having to work out the payment summary equivalent figures to disclose on a tax return of an entity with a substituted accounting period can be very time consuming. Most ...more »

Submitted by (@robbie)
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Tax System Improvement

ATO ruling on CGT on earnouts

Update and finalise TR 2007/D10, Income tax: capital gains: capital gains tax consequences of earnout arrangements now that the earnout legislation is passed. There are some types of earnouts that the legislation does not cover. The ruling should cover these.

Submitted by (@robbie)
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3 votes
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Tax System Improvement

Payment Summaries

Would it be possible to enter Payment Summary information through the ATO Business Portal/Tax Agent Portal and then being able to print payment summaries as pdf files (ideally with immediate email to employee functionality). Currently micro businesses are completing paper copies. These forms are getting more elusive to access. Most micro businesses do not have payroll functions included in their accounting software. Where ...more »

Submitted by (@anna2016)
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3 votes
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Tax System Improvement

Super contribution info availability for tax agents

Currently there seems to be no way for tax agents to access taxpayer superannuation contribution details that the ATO holds. The ATO applies this info in assessing Div293 tax but the tax agent cannot accurately estimate for a client what the Div293 liability will be because tax agents cannot access the info that the ATO holds about contributions made on behalf of a taxpayer for a financial year. The tax agent can guess ...more »

Submitted by (@robbie)
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3 votes
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