6 March 2012
In this week’s Tax highlights:
- Part IVA amendments: The Assistant Treasurer has announced that amendments will be introduced to the general anti-avoidance rule in Part IVA of the Income Tax Assessment Act 1936. Following a number of taxpayer wins in recent Part IVA litigation, the amendments will ensure that the provisions continue to be effective in countering tax avoidance schemes that are carried out as part of broader commercial transactions.
- Commissioner’s discretion to retain refunds: Legislation has been introduced into Parliament (Tax and Superannuation Laws Amendment (2012 Measures No. 1) Bill 2012) which proposes to provide the Commissioner with a discretion to withhold entitlements to high risk refunds pending integrity checks of a taxpayer’s claim.
- India – payments for software sales and support services constitute royalty: India’s Authority for Advance Rulings has held that payments received by a non-resident from India-based distributors for the sale of software products and a package of support services are in the nature of a royalty under India’s income tax legislation and the India-Australia tax treaty.
Plus we provide our synopsis of the latest tax-related cases, legislative developments, announcements, ATO information and releases, and international tax developments.
Read and download 'Tax highlights | 6 March 2012' below.