Submissions

The Taxation Institute is the most respected and influential contributor to the development of tax policy and administration in Australia. As part of this contribution, we prepare top level submissions on tax policy, administration and technical matters at both Federal and State levels. Non-confidential submissions prepared from 1996 onwards and covering legislation, ATO and Treasury consultative documents and papers, as well as rulings, determinations and a range of other ATO opinion and guideline documents, are available here.

  • Proposal to abolish the capital gains tax trust cloning exception

    05 Dec 2008

    The Taxation Institute of Australia (Taxation Institute) welcomes the opportunity to provide its comments in response to the Treasury Discussion Paper, Abolish the Capital Gains Tax Trust Cloning Exception (‘Discussion Paper'), following the announcement on 31 October 2008 by the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, that the Government intends to abolish the tax cloning exception (Press Release No 092).

  • Review of the Tax Arrangements Applying to Managed Investment Trusts

    05 Dec 2008

    The Taxation Institute of Australia (Taxation Institute) welcomes the opportunity to provide its comments in response to the issues raised by the Board of Taxation in Chapter 7 of the Review of the Tax Arrangements Applying to Managed Investment Trusts (MITs). The Taxation Institute reserves the right to further clarify aspects of this submission, particularly in respect of the Australian Taxation Office's (ATO) Listed Investment Company Ruling.

  • Joint professional body submission in relation to TD 2008/D14

    31 Oct 2008

    We agree with the interpretation of section 974-135(1) adopted in the Draft Determination. However, there are still a number of issues with the ascertainment of whether a taxpayer has an effectively non-contingent obligation (ENCO) for the purposes of that provision.

  • Joint professional body submission in relation to TD 2008/D13

    31 Oct 2008

    We refer to Draft Taxation Determination TD 2008/D13 (“Draft TD”).  The Draft TD considers when foreign income tax will be imposed on the partners, not the limited partnership, under s.830-10(1)(b) of the Income Tax Assessment Act 1997 (“Act”) for the purpose of determining whether a foreign limited partnership is a foreign hybrid limited partnership under Division 830 of the Act.

  • Australia’s Future Tax System (AFTS)

    17 Oct 2008

    The Taxation Institute is pleased to provide the attached submission in response to the Australia’s Future Tax System Review Panel’s invitation on 19 August 2008 for public submissions as part of the comprehensive review of Australia’s tax and transfer system announced by the Government on 13 May 2008.

  • Review of the Legal Framework for the Administration of the Goods and Services Tax

    19 Sep 2008

    The Taxation Institute of Australia is pleased to provide the attached submission prepared by our GST Committee in response to the Issues Paper, Review the Legal Framework for the Administration of the Goods and Services Tax released by the Board of Taxation for public comment on 18 July 2008.

    The Taxation Institute supports the Board's review of the legal framework for the administration of the GST and commends the Board for conducting extensive preliminary consultation with stakeholders during August 2008, in which representatives from our GST Committee were involved.

  • A submission on Carbon Pollution Reduction Scheme Green Paper

    01 Sep 2008

    The Taxation Institute of Australia (Taxation Institute) is pleased to lodge the attached submission in respect of the taxation issues raised in the Government's Carbon Pollution Reduction Scheme Green Paper (Green Paper). 

    Broadly the Taxation Institute supports the primary premise of the Green Paper in the taxation context, that is, that discrete provisions of the income tax law should be developed thereby increasing certainty and reducing complexity.

  • A submission on New Residential Premises and the 5 year rule in subsection 40-75(2)

    25 Aug 2008

    The Taxation Institute of Australia (‘Taxation Institute') is pleased to provide the following comments on the ATO's discussion paper, New residential premises and the 5 year rule in subsection 40-75(2) (‘Discussion Paper') released on 17 March 2008.  We also note that the ATO is giving further consideration to the interaction of subsection 40-75(2) with Division 129, in the light of its revised view on the application of Division 129 (as advised in the Tax Office Update for the NTLG GST Subcommittee 19 August 2008).

  • Joint professional body submission in relation to TD 2008/D9 - D11

    15 Aug 2008

    The Professional Bodies welcome the opportunity to comment on Draft Taxation Determinations TD 2008/D9, TD 2008/D10 and TD 2008/11 ("the Draft Determinations"), and the ATO Technical Discussion Paper:  Treatment of assets identified in relation to straddle contracts ("the Discussion Paper").

  • A submission on the draft legislation to reform Division 6C of the Income Tax Assessment Act 1936

    15 Aug 2008

    The Taxation Institute of Australia (Taxation Institute) is pleased to provide the following comments on the proposed amendments to Division 6C of Part III of the Income Tax Assessment Act 1936 (Cth) (‘Div 6C') released by the Assistant Treasurer for public comment on Wednesday 23 July 2008 as a Consultation Draft of Tax Laws Amendment (2008 Measures No 5) Bill 2008: Public Trading Trusts (‘the amendments').

  • A submission on the review of GSTR 2000/20 – priority issues

    12 Aug 2008

    The Taxation Institute of Australia (‘Taxation Institute') is pleased to provide its input into the review of GSTR 2000/20 (commercial residential premises), as advised by the ATO at the 4th June 2008 meeting of the ATO's NTLG GST Subcommittee. Our input is in response to the ATO's consideration of the broad areas that might be included in the scope of this review.

  • Thin capitalisation and the application of amendments of Accounting Standards

    05 Aug 2008

    The Taxation Institute of Australia (Taxation Institute) is pleased to provide its comments on the draft legislation released on 11 July 2008 to amend the thin capitalisation regime to accommodate certain impacts arising from the 2005 adoption of Australian equivalents to International Financial Reporting Standards (AIFRS).

  • Joint professional body submission in relation to GSTD 2008/D2

    25 Jul 2008

    A joint professional body submission in relation to GSTD 2008/D2: Goods and services tax: is a supply by way of an in specie distribution of an asset that is applied or intended to be applied in an enterprise carried on by a discretionary trust to a beneficiary of the trust made ‘in the course or furtherance of' the trust's enterprise?

  • Tax Laws Amendment (2008 Measures No 4) 2008 Bill - Family Trust Elections

    22 Jul 2008

    The Taxation Institute of Australia believes that the rollback of the amendments made by the previous Government to the FTE rules in Tax Laws Amendment (2007 Measures No 4) Act 2007 contained in the Tax Laws Amendment (2008 Measures No 4) 2008 Bill should be rejected by the Senate.

  • Joint professional body submission in relation to TD 2008/D8

    18 Jul 2008

    Joint professional body submission in relation to TD 2008/D8 Income tax: when is income tax of a private company a ‘present legal obligation' for the purpose of the distributable surplus calculation under subsection 109Y(2) of Division 7A of Part III of the Income Tax Assessment Act 1936?

  • Taxation of Financial Arrangements Stages 3&4 (TOFA 3&4) and Consolidation Interaction

    14 Jul 2008

    Our key comments on the Paper are as follows:

    1. The proposed Division 230 rules should broadly align with the existing consolidation tax cost setting rules (not vice versa), as is the case for all other significant categories of assets such as depreciating assets, trading stock and capital gains tax assets.
    2. We agree that, broadly, where tax consolidated groups acquire entities having financial arrangements the tax consequences should be similar to those relating to the acquisition of financial arrangements. This is the proposed Principle 2 in the paper. However, in our view, proposed Principle 1 (as read together with proposed Subordinate Rule 1) is inconsistent with proposed Principle 2.
    3. The tax cost setting rules in proposed Subordinate Rule 1 produce inappropriate outcomes in terms of tax cost setting amounts, particularly where the joining entity has used the compounding accruals method.
    4. The scope of proposed Subordinate Rule 2 needs to be clarified.
    5. There is no sound policy reason for excluding deferred tax liabilities (DTLs) on financial arrangements from the consolidation tax cost setting process.
    6. Where the joining entity has chosen to apply Division 230 to pre- Division 230- commencement financial arrangements, further elaboration is required on the position of the joined consolidated group.