17 April 2012
In this week’s Tax highlights we feature:
- Final report on the tax treatment of losses: The Business Tax Working Group has released its final report on the tax treatment of losses, where it broadly recommends that loss carry back be implemented under a model limited to companies and subject to their franking account balances, for a two-year period on an on-going basis. The group recommends a quantitative loss carry back cap of not less than one million dollars, together with a phase in period for the reform. It also considered that further analysis should be undertaken to develop a model for reforming the same business test.
- Exposure draft (ED) released: The Victorian Government has released ED legislation proposing to replace the ‘land rich’ duty provisions in the Duties Act 2000 (Vic) with a ‘landholder’ duty model. This would remove the land ratio test with landholder duty applying where a relevant acquisition threshold is exceeded.
- Cases – notice seeking bank information: In Australia and New Zealand Banking Group Limited v Konza, the Federal Court has held that a notice issued to the taxpayer by the ATO seeking information in respect of bank accounts held by customers of the taxpayer in its Vanuatu branch, was valid irrespective of whether the disclosure of such information would contravene Vanuatu law.
Plus we provide our synopsis of the latest tax-related cases, legislative developments, announcements, ATO information and releases, and international tax developments.