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The Future of Tax losses: Turning Losers into Winners
- By Moore Stephens Melbourne
- Published 15/12/2011
- Moore Tax News
- Unrated
On 11 December the Business Tax Working Group released its Interim Report on the Tax Treatment of Losses (the “Report”) for public comment.
The Report is part of the Business Tax Working Group’s (“BTWG”) focus on improving the business tax system to allow businesses to respond to emerging challenges and create opportunities for themselves in the local and international economic landscape. The BTWG’s initial focus on reforming the treatment of tax losses is an encouraging first step towards increased certainty in the tax law while also assisting the broader economy by delivering tax relief to corporate Australia.
The Report is part of the Business Tax Working Group’s (“BTWG”) focus on improving the business tax system to allow businesses to respond to emerging challenges and create opportunities for themselves in the local and international economic landscape. The BTWG’s initial focus on reforming the treatment of tax losses is an encouraging first step towards increased certainty in the tax law while also assisting the broader economy by delivering tax relief to corporate Australia.
R&D Incentive - Application for Advance Findings Form has been released
- By Howard Badger
- Published 14/12/2011
- Moore Tax News
- Unrated
A significant benefit of the new R&D incentive is that applicants can obtain an advance finding of whether their activities are eligible R&D activities. This is important as it provides some comfort in respect to whether they will benefit from the incentive.
The Application for Advance Findings form, which determines whether activities are eligible R&D activities, has now been made available following the registration of the Industry Research and Development (R&D) Regulations 2011 on 25 November 2011.
The Application for Advance Findings form, which determines whether activities are eligible R&D activities, has now been made available following the registration of the Industry Research and Development (R&D) Regulations 2011 on 25 November 2011.
Start date for new MIT regime deferred again … to 1 July 2013
- By Allan Mortel
- Published 2/12/2011
- Moore Tax News
- Unrated
One of the tax measures in the mid-year economic and fiscal outlook announced earlier this week by the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP, is the further deferral of the new Managed Investment Trust (MIT) regime to 1 July 2013 to allow “more time for consultation with stakeholders about how to best implement the elements of the package”. This does not seem to have received a lot of attention compared to the furore over some of the other tax measures, such as the Fringe Benefits Tax (FBT) reform for Living Away From Home Allowances (LAFHA).
Tax Consolidation: Treasury says no to your “rights to future income” deductions
- By Stephen O’Flynn
- Published 1/12/2011
- Moore Tax News
- Unrated
On 25 November 2011 the Assistant Treasurer announced changes to the rules relating to tax consolidated groups and residual tax cost setting and rights to future income (‘RFI’). The changes follow a review of the rules undertaken by the Board of Taxation. The Board concluded that the scope of the rules were broader than intended, allowing for preferential tax treatment towards consolidated groups.
Consultation paper released to provide certainty on the taxation of trusts
- By Daren Yeoh
- Published 24/11/2011
- Moore Tax News
- Unrated
On 21 November the Government released its Consultation Paper (the “Paper”), Modernising the taxation of trust income – options for reform. This is another step towards the proposed re-write of Division 6 of the Income Tax Assessment Act 1936. Currently, the law governing the taxation of trusts is plagued with uncertainty. The rules are designed to provide greater certainty as to how trust income is taxed to beneficiaries. This is a positive outcome for the many taxpayers who utilise trust structures.
Tax Loss Reform for Taxpayers Undertaking Infrastructure Projects
- By Moore Stephens Melbourne
- Published 27/10/2011
- Moore Tax News
- Unrated
Yesterday the Federal Government released a discussion paper regarding tax reform that will encourage more private investment in infrastructure projects. The proposed reforms provide significant concessional treatment for tax losses incurred by companies and trusts in respect of designated infrastructure projects that are considered to be of national importance.
Currently, tax losses that are typically incurred at the start of an infrastructure project may not be able to be claimed against taxable income derived by the same entity in future income years because those losses fail the loss recoupment rules.
Currently, tax losses that are typically incurred at the start of an infrastructure project may not be able to be claimed against taxable income derived by the same entity in future income years because those losses fail the loss recoupment rules.
The small business CGT concessions: Value your liabilities
- By Moore Stephens Melbourne
- Published 18/10/2011
- Moore Tax News
- Unrated
A recent decision handed down by the Full Federal Court (Commissioner of Taxation v Byrne Hotels Qld Pty Ltd [2011] FCAFC 127) has given much needed guidance to the application of the small business CGT concessions. This decision has clarified that liabilities arising from transaction costs incurred prior to a sale (e.g. agents fee or legal costs) can be taken into consideration when calculating the maximum net asset value test (“MNAV”).
No flight means no supply: Qantas success to impact on GST in the services sector
- By Stephen O’Flynn
- Published 9/09/2011
- Moore Tax News
- Unrated
On 1 September 2011 Qantas Airways Ltd achieved a surprise win against the Commissioner of Taxation in the Full Federal Court of Australia [1]. The Court’s decision is likely to trigger a reassessment of the GST treatment of prepayments for goods and services which never eventuate.
The New R&D Tax Credit
- By Howard Badger
- Published 29/08/2011
- Moore Tax News
- Unrated
Parliament has passed the Tax Laws Amendment (Research and Development) Bill 2010 and the Income Tax Rates Amendment (Research and Development) Bill 2010. The new R&D Tax Credit Program will replace the R&D Tax Concession effective from 1 July 2011. The new R&D Tax Credit provides a more generous incentive but is limited by tighter definitions of R&D.
A trust’s investment portfolio is not automatically on capital account
- By Allan Mortel
- Published 25/08/2011
- Moore Tax News
- Unrated
The ATO has finalised a Tax Determination that deals with whether gains and losses from the disposal of investments held by a trust are on revenue or capital account.