Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Bill
Officials' report to the Finance and Expenditure Committee on submissions received on the Bill
February 2001
General support for proposed amendments
- Issue: PIE investor interest exemption for lines trusts
- Issue: Pre-consolidation imputation credits – Clarifying the imputation rules for the use of pre-consolidation imputation credits by corporate groups
- Issue: Amend the definition of deferrable tax
- Issue: Restricting the ability to challenge a tax position
- Issue: Spreading forward of fertiliser expenditure
- Issue: Non-resident contractors’ tax
- Issue: Removal of the three-yearly parental tax credit review
- Issue: Aligning the definition of benefit
- Issue: Clarifying the Commissioner’s powers to take copies of documents
GENERAL SUPPORT FOR PROPOSED AMENDMENTS
(Clause 61)
Issue: PIE investor interest exemption for lines trusts
Submission
(Chartered Accountants Australia and New Zealand)
We support the proposed amendment.
Recommendation
That the submission be noted.
(Clauses 48, 49, 50, and 51)
Issue: Pre-consolidation imputation credits – Clarifying the imputation rules for the use of pre-consolidation imputation credits by corporate groups
Submission
(Chartered Accountants Australia and New Zealand, Corporate Taxpayers Group, Deloitte, KPMG)
The proposed changes to clarify the use of pre-consolidation imputation credits are welcomed and supported.
Recommendation
That the submissions be noted.
(Clause 67(2))
Issue: Amend the definition of deferrable tax
Submission
(Chartered Accountants Australia and New Zealand)
Support for the reform.
Recommendation
That the submission be noted.
(Clauses 77 and 78)
Issue: Restricting the ability to challenge a tax position
Submission
(Chartered Accountants Australia and New Zealand)
Support for the reform.
Recommendation
That the submission be noted.
(Clause 21)
Issue: Spreading forward of fertiliser expenditure
Submission
(Chartered Accountants Australia and New Zealand)
Support for the reform.
Recommendation
That the submission be noted.
(Clause 54)
Issue: Non-resident contractors’ tax
Submission
(Chartered Accountants Australia and New Zealand)
The amendment, which requires a non-resident contractor seeking an exemption from income tax for a payment to show that the amount derived from that payment is not “assessable income”, and the application date of the amendment, is supported.
Recommendation
That the submission be noted.
(Clauses 46 and 47)
Issue: Removal of the three-yearly parental tax credit review
Submission
(Chartered Accountants Australia and New Zealand)
Comment
The submitter supports the proposed amendment to remove the requirement to review the parental tax credit every three years.
Recommendation
That the submission be noted.
(Clauses 58(13), 64 and 65)
Issue: Aligning the definition of benefit
Submission
(Chartered Accountants Australia and New Zealand)
The submitter supports the proposed amendments to align the definition of a main benefit in the Acts administered by Inland Revenue with that used in the Social Security Act 2018.
Recommendation
That the submission be noted.
(Clause 69)
Issue: Clarifying the Commissioner’s powers to take copies of documents
Submission
(Chartered Accountants Australia and New Zealand)
We support the reform. The amendment will extend the Commissioner’s powers under section 17C of the Tax Administration Act 1994 (TAA) to take copies and the like in relation to documents provided under other sections of the TAA, to documents that are produced in the course of the Commissioner’s inquiries under section 17I.
Recommendation
That the submission be noted.