Your Association at work - 25 February 2010 update

Submission: Draft Taxation Ruling TR 2009/D8 Income Tax: Division 7A loans: trust entitlements

Taxpayers Australia has contributed and made a submission with a number of professional groups on the Draft Taxation Ruling TR 2009/D8 Income Tax: Division 7A loans: trust entitlements. Our submission sets out our concerns on the following key issues:

• the draft Ruling contradicts the underlying policy intent of Division 7A
• the application of section two of the draft Ruling concerning the extinguishment of a unpaid present entitlement (UPE) and its conversion into a loan
• the application of section three which provides that a subsisting UPE may amount to either the provision of financial accommodation or an in-substance loan under section 109D(3)
• the residual application of Subdivision EA, and
• certain adverse tax consequences which arise from the draft Ruling.

Submission: new TFN withholding rules for closely held trusts

Taxpayers Australia has prepared and made a submission on the proposed new TFN withholding rules for closely held trusts. In the main, Taxpayers Australia agrees with the policy intent of the TFN withholding regime for closely-held trusts. However, under amendments, we have reservations in relation to the compliance burden and the practical difficulties which may be placed on trustees and their tax advisers as proposed.

Read the full submission


NTLG FBT Sub-committee

Taxpayers Australia represented its members at the National Tax Liaison Group (NTLG) FBT subcommittee on 18 February 2010 in Sydney. Broadly, the following issues were discussed in the meeting:

• Section 23AG foreign income exemption changes and FBT
• Entertainment facility leasing expenses
• Interaction of Reasonable Food Amounts and Meal Entertainment Benefits
• Incidental purchase and sale costs of temporary accommodation costs on relocation
• Expense payment reimbursements in relation to expenses incurred in previous periods
• Living away from home reimbursements and minimum salary rules for the Department of Immigration and Citizenship (DIAC) purposes
• FBT treatment of employer contributions into superannuation funds for life insurance, and
• Consolidated FBT returns.

The Tax Office will endeavor to provide responses to all matters raised at which point Taxpayers Australia will communicate all relevant matters to members.