Taxation
Content Summary
2024
20 March 2024 - we suggest the Government more broadly consider the pros and cons of the early adoption of Pillar Two in full. We note that mainland China has not announced its position on Base erosion and profit shifting (BEPS) Pillar Two implementation and Singapore recently stated it will only consider the implementation of UTPR after their Domestic Top-up Tax (DTT) and IIR have been implemented.
23 February 2024 - Further work should be undertaken by the ATO on the case for tax deductibility of financial advice fees as part of an initial advice arrangement; apportionment principles and evidentiary requirements and date of application.
22 February 2024 - One of our key concerns is the guidance on the information to be published on the Register. In addition, regarding the Transitional rules, we have identified errors. We also highlight that the two Code items are unlikely to stop unregistered or deregistered preparers from circumvention of the Code obligations.
14 February 2024 - A joint submission requesting the Queensland Government increase funding to the QRO to improve their ability to meet service standards and deliver timely advice.
13 February 2024 - In response to the ATO’s request, we make the following comments to further improve the efficacy of the ATO’s PAG on the amendments to the thin capitalisation rules.
29 January 2024 - The Joint Bodies support the proposition that the Tax Practitioners Board (TPB) should have a robust sanctions regime to deter misconduct and impose appropriate penalties proportionate to the level of wrongdoing. Fundamentally, we consider it important that any sanctions regime be built on the core principles of proportionality and fairness. To give effect to these principles, the TPB’s powers should comprise a wider range of graduated sanctions that allow the TPB to impose the appropriate sanction proportionate to the severity of the relevant contravention or misconduct.
23 January 2024 - The Professional Accounting Bodies support all measures that intend to maintain or improve the integrity of our taxation and superannuation system and those who operate within it. We are of the view that it is important to ensure that any amendments effectively address identified shortcomings in the existing regulatory environment. Our submission intends to assist the Government achieve this through suggested amendments to the draft Instrument and draft Exposure Draft.
2023
22 December 2023 - We stress that passage of this Bill as is has the potential to damage our economy and jobs. Capital is mobile and investors have choices. They seek opportunities with the best return on investment and this Bill will impact that return. Jurisdictions with thin capitalisation rules that are more favourable and less complicated, will look more attractive to investors than Australia.
9 November 2023 - We support the PCG in uplifting the threshold for the market value of estate assets from $5 million to $10 million. We made corrections to some paragraphs and examples. We also made suggestions to improve the efficacy of the PCG.
30 October 2023 - Our biggest concern is the new ordering between the debt deduction creation rules and all other thin capitalisation provisions in Division 820. Because of the lack of a tax purpose test, this new ordering means the majority of the debt deductions in respect of the newly amended ‘financial arrangements’ will potentially be denied deductions under the amended debt deduction creation rules. This will reduce the amount of deductible debt, increase the tax and that will decrease investment in Australia. It will also significantly increase the compliance burden for taxpayers in tracing their use of funds and acquisitions of assets.
29 September 2023 - We believe that the adoption of a patent box tax regime will send a strong and positive signal of Hong Kong’s desire to attract and retain R&D activities. The Government should consider the merits of not following the OECD’s Nexus Approach provided it is functionally equivalent, similar to that of the IP regime in mainland China as it is a more expansive and flexible IP box regime, and it has been evaluated as non-harmful by the OECD.
25 September 2023 - We believe it is incorrect to determine tax residency based on a set number of days, and it should not be the sole determinative factor. Where individuals live and work overseas but have their spouse and children living in Australia, such individuals do not sever their Australian tax residency. We also do not believe that individuals should be considered tax residents of Australia simply because they have spent more than 45 days here.
21 July 2023 - The Government should defer the commencement date and change the $2m de minimise threshold to a net basis. Consultation is needed for debt creation rules and correction is needed for the third party debt test.
18 July 2023 - We recommend the Government extend the bonus period beyond one year and increase both the size of the bonus deduction and the total eligible expenditure. We also seek clarification on a number of important aspects to improve the proposed tax incentive.
17 July 2023 - The Professional Accounting Bodies recommended the federal and state governments develop a holistic pre-prepared and tested national disaster relief package for business and their employees.
14 July 2023 - We recommend improved targeting of the trustee tax and reference the Division 7A provisions in Australia and expand the tax concession period for deceased estates.
14 March 2023
28 February 2023
2022
22 December 2022
20 December 2022
11 December 2022
7 December 2022
4 November 2022
20 October 2022
6 October 2022
5 October 2022
3 October 2022
30 September 2022
13 September 2022
14 April 2022
31 January 2022
2021
28 September 2021
NZ IRD Expenditure claims living onsite in hotel or boarding house
13 July 2021
28 June 2021
10 June 2021
28 May 2021
30 April 2021
23 March 2021
15 March 2021
1 March 2021
12 February 2021
2020
27 July 2020
28 April 2020
2 April 2020
2 April 2020
2019
21 August 2019
12 August 2019
23 April 2019
14 March 2019
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