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Tax insights

“This is not a 'crackdown' on the use of trusts” - December 2011
The Government recently released a consultation paper on the next phase of reform on the taxation of trusts in Australia. Our Private Client Services Update provides a brief explanation of what this means for trustees of family discretionary trusts and other closely held trusts.

Minerals Resource Rent Tax / Petroleum Resource Rent Tax - December 2011
The MRRT and extended PRRT are proposed to apply from 1 July 2012. Our Tax Insight addresses the key focus areas for affected tax payers. It also explores the impact on financial statements, how to manage tax risk and compliance, and what systems and processes are required.

Tax consolidation reforms require action by groups - December 2011
Long-awaited changes to Australia’s tax consolidation laws have wideranging impacts on consolidated groups’ recent and future transactions and prior returns, including the treatment of rights to future income (RTFI) and residual revenue assets.

No supply, still no GST - November 2011
A recent Full Federal Court decision confirmed Qantas' entitlement to a GST refund arising where passengers had pre-purchased tickets but had not boarded their flights. We discuss how businesses should now be reviewing their operations to investigate whether they may be entitled to claim GST refunds for supplies that have never eventuated.

Changing transfer pricing laws and increased ATO scrutiny - November 2011 (124.9kb)
Transfer Pricing Insight examines the significant impact of current legislative changes and the ATO’s planned transfer pricing administrative initiatives on the Australian transfer pricing landscape.

Foreign investors under the microscope - October 2011 (409.8kb)
Our Tax Insight discusses two major issues for inbound investment into Australia by foreign managed funds in the final tax determinations issued by the ATO.

Minerals Resource Rent Tax - October 2011
The second Exposure Draft legislation for the proposed Minerals Resource Rent Tax (MRRT) has provided taxpayers with a fuller picture of the proposed law. Our latest Tax Insight provides our view on the draft legislation along with a useful MRRT refresher to update you on key MRRT concepts.

Extension of the Petroleum Resource Rent Tax - October 2011
The release of the Exposure Draft legislation to extend the Petroleum Resource Rent Tax (PRRT) to onshore oil and gas projects and the North West Shelf Project, marks the next stage in the Federal Government’s proposed changes to the taxation of resources. Learn more about the PRRT Exposure Draft.

Prepare for new Australia tax reform directions - October 2011 (155.4kb)
Australia's Federal Treasurer, Mr Wayne Swan, when closing the Australian Tax Forum, foreshadowed six tax reform initiatives, including a Business Tax Reform working group. We discuss the reform process and what needs to be considered in preparation for the new Australian tax reform directions .

New legislation to change taxation of trusts - June 2011 (140.7kb)
This Tax Insight explores a new tax law amendment Bill introduced to Parliament on 2 June 2011 , affecting who pays tax on the income of many trusts.

Extensive tax reforms for not-for-profit entities and charities - June 2011 (180.9kb)
One of the most significant and concerning aspects of the 2011 Federal Budget was the Government's announcement regarding a number of proposals which will significantly alter the taxation and financial reporting landscape for the not-for-profit (NFP) and charity sectors.

Full Federal Court rejects ATO transfer pricing approach - June 2011 (193.7kb)
The unanimous decision by the Full Federal Court in the case of SNF (Australia) Pty Ltd poses a major conundrum for the ATO's transfer pricing approach. Our Transfer Pricing Tax Insight (pdf, 555kb) outlines the highlights of the decision, the far-reaching impacts, what the decision means for the ATO and action for taxpayers.

Revamped APA Program offers more clarity for taxpayers - March 2011 (559.4kb)
The ATO's updated guidelines (PS LA 2011/1) for Advanced Pricing Arrangements (APAs) provide greater clarity for taxpayers around formal APA procedures, reinforcing the ATO's commitment to maintaining the APA Program as part of Australia's transfer pricing regime. Our Transfer Pricing Insight discusses the guidelines in detail and includes recommended action for taxpayers.

Foreign source income reform - February 2011 (pdf, 436.2kb)
The release of exposure draft legislation relating to controlled foreign company (CFC) and foreign accumulation fund (FAF) rules marks the commencement of the final stages of reform to Australia's foreign source income rules, creating opportunities for more efficient international business structures. Our Tax Insight examines the implications of the reforms and recommended action for taxpayers.

No respite for family discretionary trusts - February 2011 (pdf, 124.2kb)
This Private Client Services Insight focuses on recent developments impacting the tax effectiveness of discretionary trusts. This Insight examines two important Federal Court cases, and potential issues arising from the proposed rewrite of the trust tax laws.

ATO final tax ruling on transfer pricing impact of global restructures - February 2011 (pdf, 369.9kb)
The ATO has released its final ruling TR 2011/1: Application of the transfer pricing provisions to business restructuring by multinational enterprises. Australian taxpayers that have recently undertaken or are planning to undertake a cross-border restructure will need to revisit their transfer pricing provisions as a result. Our Tax Insight (pdf, 370kb) discusses the implications for taxpayers.

Board of Taxation discussion paper on collective investment vehicles including investment manager regime - December 2010 (pdf, 382.2kb) 
The Board of Taxation has released a discussion paper on the potential reform of Australia's tax rules for investment into Australia by foreign investors through Australian investment managers. Our Tax Insight focuses on the implications of the proposed changes, which will play a significant role in shaping the future tax system for the asset management sector.

Global tax trends: raising and investing capital - December 2010 (pdf, 1.1mb) 
We asked tax directors at 130 of the world's largest companies for their views on the tax issues surrounding transactions. Global tax trends: raising and investing capital reports on the findings and discusses a number of key trends.

Payroll tax matrix 2010/2011 - November 2010 (pdf, 109.2kb) 
This Payroll tax matrix summarises payroll tax rates and exemption thresholds for FY11 across Australia's states and territories. It also outlines the remuneration items that attract payroll tax in each jurisdiction. This matrix is useful both for companies with employees in one state/territory and in multiple jurisdictions across Australia.

Australia's proposed Minerals Resource Rent Tax - July 2010  (pdf, 432.3kb)
The Government has abandoned the "catch all" Resource Super Profits Tax and proposes a new profits tax applicable to the coal and iron ore sector, to be known as the Minerals Resource Rent Tax (MRRT). Major concessions have resulted in a new MRRT rate of 22.5%, however there is still a long way to go. Our analysis examines changes under the proposal, and impacts for resources companies.

Tax reform wave leaves resources sector in its wake (pdf, 368.8kb) 
The Government's response to Australia's Future Tax System Review (the Henry Review) was positioned as "the first wave of our agenda to reform resource, company and small business taxes and superannuation", but it has fallen well short of the significant "root and branch" overhaul of our tax and transfer system originally intended. Ernst & Young's analysis focuses on the impacts of the Government's response for Australian businesses, their stakeholders and investors. 

TOFA: time to act - March 2010 (pdf, 325.3kb) 
The new rules governing the taxation of financial arrangements (TOFA) affect most corporate groups and will likely impact cash flows, franking account balances, financial accounting outcomes, treasury and hedging strategies, tax compliance requirements and for some businesses product development strategies and customer relations. We discuss the strategic and practical issues to help you make the right choices for your business.

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