21 February 2012
In this week’s Tax highlights:
- Exposure draft – Commissioner’s discretion to retain refunds: Following the Full Federal Court’s decision in Commissioner of Taxation v Multiflex Pty Ltd, exposure draft legislation has been released proposing to allow the Commissioner a discretion to delay refunding an amount to a taxpayer pending integrity checks of their claim. Importantly, the legislation is proposed to apply to running balance account surpluses of all types (indirect tax and direct tax), where the entity has given a ‘notification’ and the Commissioner is satisfied that it would be reasonable to require verification of an amount claimed. Under this proposed legislation, refunds could potentially be retained for up to a maximum of 60 days and in some circumstances extended for further periods.
- TOFA – discussion paper on tax hedging provisions: Treasury has released a discussion paper on improving the operation of the taxation of financial arrangements (TOFA) tax hedging provisions in relation to hedge ineffectiveness and hedging of a firm commitment.
- ATO Public Rulings Program: The ATO has updated its Public Rulings Program and has indicated that the release of the draft ruling on employee share schemes and share capital tainting has been deferred to a date ‘to be advised’ after originally being scheduled for release on 29 February 2012.
Plus we provide our synopsis of the latest legislative developments, tax-related announcements, ATO information and releases, and international tax developments.