Tax news, views & clues – December 2017

  • Consultation paper: combating phoenix activities – The Federal Government has released a consultation paper proposing company and tax law reforms to combat phoenix activities.
  • New passive income test for lower corporate tax rate – The Federal Government has introduced a Bill to put a passive income test in place for corporate tax entities.
  • ATO guidance: what is “carrying on a business”? – The ATO has issued a draft taxation ruling to explain the factors it will consider when deciding whether a company “carries on a business”.
  • Total super balances and pension transfer balance account reports – The ATO has agreed to modify the reporting obligation for total super balances, and has set out when super providers and life insurance companies must lodge transfer balance account reports.
  • Fringe benefits tax: should an Uber be treated as a taxi? – The ATO is now examining whether Uber trips should be eligible for the “taxi travel” FBT exemption.
  • Tax treatment of long-term construction contracts – The ATO has explained what accounting methods taxpayers can use for long-term construction projects.
  • Foreign equity distributions to corporate entities – Two recent taxation determinations deal with how the foreign equity distribution rules apply where the recipient is a corporate partner in a partnership or a corporate beneficiary of a trust.