Deloitte Corporate Tax Partner, Kaylene Hubbard, said the Federal Government’s 09 Budget announcements clarify the status of a number of outstanding tax issues providing some greater measure of certainty for corporate Australia.

“The Treasurer yesterday clarified the status of various announcements made by the previous government in relation to tax consolidation, company loss recoupment and TOFA,” Ms Hubbard said.

“In some cases there has been a tightening of arrangements, in others a closing of loopholes, while in a small number the announced treatment is more generous.

“Taxpayers undertaking corporate restructures will no longer be able to use scrip for scrip rollovers to obtain market value cost bases for assets acquired.”

Other smaller measures include removing the ‘double dip’ benefit  available on laptops and other work-related electronic devices, the tightening of election requirements in relation to employee share schemes and extending the period over which in-house computer software must be depreciated.

“It is pleasing to hear that the new government has agreed to proceed with these amendments but there has been no reference to the more substantive issues outlined in the Review of Self Assessment System (ROSA) conducted in 2004.

“It’s a start, but expectations have been raised. Movement on the outstanding recommendations made in ROSA would give much needed clarity to corporate Australia and we await their potential consideration in the upcoming tax review.”