29 October 2012
In this week's Tax highlights we feature:
- Taxation of trusts reform: A policy options paper has been released by the Government on the rewrite of the trust income tax provisions and two models for the taxation of trust income are proposed. A broader framework for taxing trust income has also been proposed, with key features including character retention and the streaming of trust income and capital gains
- Limited recourse debt amendments: Treasury has released exposure draft legislation proposing amendments to clarify that the definition of ‘limited recourse debt’ includes arrangements where, in substance or effect, the debtor is not fully at risk in relation to the debt
- BTWG draft final report on reduction in company tax rate: The Business Tax Working Group has released its draft final report on the case for a reduction in the company tax rate. The BTWG was unable to recommend a revenue-neutral package to lower the corporate tax rate, although it found that Australia should have an ambition to reduce the rate as economic and fiscal circumstances permit.
Plus we provide our synopsis of the latest legislative developments, cases, announcements, international news and ATO information and releases.
Read and download Tax highlights in PDF format, for additional information