TAXATION – AUSTRALIA – INFORMATION SERVICES

Company tax cut eligibility ‘mind-boggling’

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 11-Jul-17

Tax experts say the Australian Taxation Office’s updated advice on the application of small business tax cuts to passive family investment companies does little to clarify the situation. The ATO previously advised that the 27.5 per cent tax rate will apply to companies whose activities are "passive", but this has been changed to "relatively passive" in a revised statement. Mark Leibler of law firm Arnold Bloch Leibler says the Federal Government clearly intended for the tax cuts to apply solely to businesses that actively trade.

CORPORATES
AUSTRALIAN TAXATION OFFICE, ARNOLD BLOCH LEIBLER, THE TAX INSTITUTE, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COUNCIL OF SOCIAL SERVICE

ATO signals tax windfall for wealthy

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Original article by Nick Tabakoff
The Australian – Page: 1 & 2 : 4-Jul-17

A draft tax ruling issued by the Australian Taxation Office in March 2017 could allow "passive" family investment companies to claim tax refunds and deductions. The draft ruling overturned the generally-accepted view that such family investment companies – which do not actively carry on a business – would not be eligible for the reduction in the company tax rate for small businesses from 30 per cent to 27.5 per cent over recent years. Tony Sloan of BDO says the draft ruling would affect many of the firm’s clients, as most would have filed tax returns for 2016 at the full tax rate of 30 per cent.

CORPORATES
AUSTRALIAN TAXATION OFFICE, BDO CHARTERED ACCOUNTANTS AND ADVISERS, NATIONAL TAX LIAISON GROUP