Joint submission on TD 2011/D12 – temporary absences and s 23AG

The Institute, together with the other professional bodies, lodged a joint submission on Draft Taxation Determination TD 2011/D12 on 20 January 2012.

TD 2011/D12 (the draft TD) asks 'what types of temporary absences from foreign service form part of a continuous period of foreign service under section 23AG of the Income Tax Assessment Act 1936?'

The Draft TD is largely a rework of Taxation Ruling TR 96/15 following the 2009 amendments to section 23AG of the Income Tax Assessment Act 1936.

The submission comments on two aspects of the draft TD, being:

• The material change in relation to part-time employees (‘PTE’). The Draft TD now brings part time foreign service arrangements into the one-sixth rule provisions, where previously PTEs were outside the scope of the one-sixth rule in accordance with TR 96/15. While this change may disadvantage some PTEs, this treatment is consistent with the treatment of full time employee absences and is more equitable
• The meaning of leave in accordance with terms and conditions of foreign service in cases of accident or illness. The professional bodies recommend the further clarification is needed in the Draft TD.
  

Article last Updated 3 May 2012