Main NTLG committee

View meeting updates below:

  • NTLG Meeting on 19 September 2013

    The National Tax Liaison Group met in Canberra on 19 September 2013, with the Institute represented by Grant Wardell-Johnson (KPMG), Andrew White (Greenwoods & Freehills) and Michael Croker (Head of Tax Policy).

    The Commissioner of Taxation spoke to a draft of a proposed ATO Mission, Vision and Values Statement developed to guide the ATO as it strives to become a leading revenue collection agency by world standards.

    Other issues discussed included:

    • The ATO consultation website is undergoing further development with more details on the operation of the consultation hub expected in October 2013. The Institute will be actively engaged in the new consultation process, both during the development process and on an on-going basis. As always, the tax policy team at the Institute can help members with issues they wish to raise with the ATO
    • Draft minutes of a consultative workshop held on the amendments to Part IVA have been circulated for comment, with the ATO stressing that the contents are general in nature and not necessarily indicative of the view that it may take when applying Part IVA to particular fact situations
    • The administrative impact of recent changes to the transfer pricing provisions
    • Ongoing concerns about the revamped ATO website (search capability, printing etc)
    • The Independent Review of Large Business and International Statement of Audit Position – the first review has recently been completed by the ATO with about five more in the pipeline.
  • NTLG Committee Update on 18 July 2013

    On behalf of the Institute, Grant Wardell-Johnson (KPMG) and Tony Stolarek (Ernst and Young) participated in an ATO Part IVA workshop on 18 July, to consider a range of scenarios in relation to the operation of the general anti-avoidance rules in Part IVA of the Income Tax Assessment Act 1936 as recently amended (in relation to the identification of and analysis of tax benefits).  The discussion was initiated by the professional bodies at the National Tax Liaison Group meeting on 22 March 2013, to enable the ATO to consider the next steps for development of guidance in addition to the existing materials including the practice statement dealing with the application of Part IVA, PS LA 2005/24.

    The scenarios were very minimal in terms of the facts identified, and were designed to stimulate discussion about the application of Part IVA.  It was assumed for purposes of the Part IVA discussion that the tax outcomes of the scenarios (excluding the application of Part IVA) were achieved.

    The discussion was at an informal preliminary level, not binding the ATO, to assist to identify the guidance products which might need to arise, which may possibly use some of the scenarios as examples.  No preliminary analyses were produced. The ATO are now checking some of the issues that arose during the discussion, particularly some of the earlier rulings and guidance that may be relevant, and synthesising the principles arising out of the discussions along with, where possible, particular factual considerations or variations that might be relevant when it comes to considering live examples of some of the scenarios against their full factual context. 

    The discussion was a very positive one and the new Chief Tax Counsel, Robert Olding, who chaired the meeting, thanked the professional bodies for their very significant contribution which exceeded his expectations.

  • NTLG meeting on 13 June 2013

    On 13 June 2013, Grant Wardell-Johnson (KPMG), Tony Stolarek (Ernst & Young) and Paul Stacey (Institute Head of Tax Policy) represented the Institute at the National Tax Liaison Group meeting (NTLG).

    The key issues discussed include:

    • Strategic direction of tax policy and administration – Treasury discussed the budget changes to s 25-90 and confirmed the exposure draft legislation for the Trust reform review was not going to be released by 1 July 2013. The ATO discussed the base erosion and profit shifting issues and the Commissioner’s visit to the Forum of Tax Administrators in Russia in May.
    • Compliance directions in large business compliance – ATO discussed various developments in this area including:
      • an update on its review of ‘higher consequence’ taxpayers
      • it will conduct a review in relation to the treatment of the rights to future income under consolidations
      • it will expand on its rulings pilot, and
      • it will be examining off-shore hubs.
    • Independent review function– the ATO provided an outline of its process for the independent review. It will be part of the process before a position paper is issued under a Large Business and International (LB & I) audit.
    • ATO external consultative arrangements – The ATO will be reducing the number of forums from 68 to 8 as a result of its review of its external consultative arrangements. Those few that remain will primarily be high level and relationship-focused in nature. Resolution of differences in interpretation and administration between the ATO and the taxpayer community are to be dealt with by ad hoc groupings which coalesce then disperse and are to be accessed through a single central 'gateway'.

    The formal minutes of the meeting will be published on the ATO website in due course. For further information on this meeting, please contact Tax Group.

  • NTLG Meeting on 22 March 2013

    On 22 March 2013, Grant Wardell-Johnson (KPMG), Tony Stolarek (Ernst & Young) and Paul Stacey (Institute Head of Tax Policy) represented the Institute at the National Tax Liaison Group meeting (NTLG).

    The key issues discussed include:

    • ATO external consultative arrangements – the Commissioner is reviewing the ATO consultative forums as, ideally, he wants the forums to be as specialised and targeted as possible. An external reviewer has been engaged and will speak to the professional bodies individually.
    • Tripartite consultation practices and Treasury/ATO Tax and superannuation protocol – the key point of draft PS LA 3473 The Australian Taxation Office's (ATO's) role in tripartite tax law design is to give a clear message to ATO staff involved in consultation that there are free to express their views in consultation meetings on what they thing the issues are. The finalisation of draft PS LA 3473 has been held up because of work done on refreshing the Treasury/ATO Tax and Superannuation protocol.
    • Emerging Law Design – Treasury provided update on the following items:
      • The review of the taxation of trust income –it is unlikely that legislation implementing the outcome of the trust review will be passed by 1 July 2013 for implementation by 1 July 2014 given the number of weeks of parliament sittings left before the election.
      • Specialist Reference Group on multinational corporate taxation – the group has met once to provide input into a scoping paper on ways to address tax minimisation of multinational enterprises. The scoping paper is expected to be released for public consultation in late April. The Specialist Reference Group also reviewed a short paper on the Assistant Treasurer’s announcement on greater transparency of tax paid by large and multinational businesses.
      • A written update was provided on the taxation of the MIT regime, transfer pricing tranche 2 amendments, Part IVA changes, denial of CGT discount to non-residents, loss carry back measure and monthly payments of PAYG instalments by certain companies.
    • ATO guidance on the application of Part IVA following the passage of amendments in the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 – the ATO is planning to update practice statement PS LA 2005/24 dealing with the application of General Anti-Avoidance Rules to reflect the amendments contained in the Bill. It is proposed that the professional bodies, the ATO and Treasury will consider several examples to work through the new rules.
    • Review of service standards – The ATO is looking to move its current service standards from time-based service standards to a service commitment framework. Broadly, the framework is as follows:
      1. helpful and accurate
      2. easy to deal with
      3. timely
      4. keep me informed
      5. be professional.
      The Commissioner is looking at the notion of effectiveness rather than efficiency.

    For further information on the meeting, please refer to the 22 March 2013 NTLG meeting agenda which contains preliminary ATO responses. The formal minutes of the meeting will be published on the ATO website in due course.

  • NTLG meeting on 12 December 2012

    On 12 December 2012, Alexis Kokkinos (Pitcher Partners), Tony Stolarek (Ernst & Young) and Paul Stacey (Institute Tax Counsel) represented the Institute at the National Tax Liaison Group meeting (NTLG).

    The key issues discussed include:

    • an update from Treasury on the following:
      • The process regarding Treasury’s examination of multinational tax minimisation strategies and its risks to the sustainability of Australia’s corporate tax base which was announced by the Assistant Treasurer on 10 December 2012
      • The recent Treasury Revenue Group Consultation Stakeholder meeting held on 28 November 2012
      • Changes to the Treasury organisational structure
    • the Chief Executive Officer from the Clean Energy Regulator gave an overview of the Clean Energy Regulator and how the carbon pricing mechanisms works
    • a superannuation update on limited recourse borrowing arrangements and superannuation reform
    • an update on the ATO’s Transforming Tax Technical Decision Making Project
    • an update on the processes around Priority Private Binding Rulings and forward planning
    • the ATO response to recent decision re timing of deductibility of General Interest Charge (Nash and Commissioner of Taxation [2012] AATA 719)
    • the concept of reasonably arguable position in the context of the uniform penalties regime.

    For further information on the meeting, please refer to the 12 December 2012 NTLG meeting agenda which contains preliminary ATO responses. The formal minutes of the meeting will be published on the ATO website in due course.

  • Trustee resolutions – ATO audit finds 100% compliance

    At the NTLG main meeting on 20 September 2012, the ATO reported that its audit of a sample of trustee resolutions found that there was 100% compliance with the requirement that they be made by 30 June.

    The ATO’s audit was in the form of a limited review of 120 trusts. The aim of the audit was to assess the success of the ATO’s education campaign regarding the change in the timing requirement for trustee resolutions. As at 5 September 2012, 104 responses have been received by the ATO. The ATO is satisfied that resolutions were made by 30 June 2012 in relation to the pool that it chose for follow-up review.

  • NTLG meeting on 9 July 2012

    On 9 July 2012, Alexis Kokkinos (Pitcher Partners) and Paul Stacey (Institute Tax Counsel) attended the meeting of the National Tax Liaison Group (NTLG). The key issues discussed include:

    • Role of ANZSIC codes and members concerns that the ATO is using the codes for benchmarking to conduct compliance activities. ATO noted that benchmarks were only used as one tool to identify taxpayers under reporting cash and said there was a five step process to further refine the ATO’s focus based on third party data or other information available
    • The development of transparent performance indicators to measure the success of the ATO’s implementation of the Transforming Tax Technical Decision Making Project (TTTDM Project). The ATO is hoping the TTTDM Project will result in early engagement of experts and decision makers; less disputation; more timely decisions; more satisfactory feedback; and has asked the professional bodies to get member feedback in this regard
    • The ATO’s plans to implement the recommendations in the Inspector-General of Taxation’s reports on his review into the ATO's small and medium enterprise audit and risk review policies, procedures and practices and his review into the ATO’s administration of class rulings
    • The ATO’s compliance strategy for 2012-2013 in relation to TFN withholding for closely held trusts which broadly consists of:
      • Continuation of a ‘help and educate’ approach for trustees who are lodging TFN reports that result in unmatched beneficiaries and related obligations
      • Analysis will be undertaken by S&ME Compliance on trust tax return data to uncover cases where trustees have not reported TFNs
      • Analysis and compliance will be undertaken by S&ME Compliance on beneficiaries who have not returned trust income
    • The reprioritisation of proposed tax law changes as a result of staff reductions in Treasury. Treasury was waiting for the Spring legislative program to issue before they can reprioritise. Treasury also provided a brief update on the following:
      • Budget 2012-2013 announcement on CGT refinements in relation to deceased estates
      • Budget 2012-2013 announcement on the removal of the 50% CGT discount for non-residents
      • The meaning of “income of the trust estate” in Division 6 of Part III of the ITAA 1936
      • The Bill on the transfer pricing changes
      • The Board of Taxation’s post-implementation review of Division 7A
      • Section 254T of Corporations Act 2001- dividend issue
      • Fringe Benefits Tax Living-away-from-home allowance changes.

    For further information on the meeting, please refer to the 9 July 2012 NTLG meeting agenda which contains preliminary ATO responses. The formal minutes of the meeting will be published on the ATO website in due course.

  • NTLG post meeting update

    At the NTLG meeting on 28 March 2012 representatives from the professional associations asked the ATO to provide examples of ‘safe harbours’ prior to finalisation of TR 2011/D8 Income tax: Section 254T of the Corporations Act and the assessment and franking of dividends paid from 28 June 2010.

    On 8 June 2012 a NTLG post-meeting update was provided to members. The update sets out examples of dividends paid out of profits in the following circumstances:

    • Interim dividend determined and final year dividend declared, and both paid out of profits netted off against accumulated losses
    • Final dividend declared and paid out of profits carried to a profits reserve, and there are accumulated losses.

    The Institute met with ATO representatives on the NTLG Corporations Law Working Party and presented a number of options to assist with the development of the above examples.

    The Institute welcomes the ATO’s willingness to provide this guidance to assist companies preparing annual financial reports for the year ended 30 June 2012 given that TR 2011/D8 is not scheduled to be published until 27 June 2012.

    If you have any questions regarding the update please email the Tax Group

  • NTLG meeting on 20 September 2012

    On 20 September 2012, Moira Merrick (Deloitte), Tony Stolarek (Ernst & Young) and Paul Stacey (Institute Tax Counsel) represented the Institute at the National Tax Liaison Group meeting (NTLG).

     

    The key issues discussed include:

    • An update from Treasury on the following:
      • Part IVA amendments
      • Fringe Benefits Tax Living-Away-From-Home Allowance amendments
      • Transfer pricing reforms
      • Denying CGT discount for non-residents
      • Related party debt and limited recourse debt changes
      • Status on the Controlled Foreign Company rules rewrite
      • Fringe Benefits Tax Living-away-from-home allowance changes
      • Changes to the Treasury organisational structure
      • ATO and Treasury revised protocol
    • A governance report on the NTLG Internationals Sub-group and the General Ant-Avoidance Rule Panel report
    • The ATO’s staff capabilities as a result of the efficiency dividend applied to the Commonwealth agencies
    • The ATO Dispute Management plan and the ATO’s actions following the Inspector-General of Taxation’s review of the ATO’s early and alternative dispute resolution processes and practices
    • The application the risk differentiation framework to the small and medium enterprise market
    • An update on the development of the 2013 lodgment program.
    • The ATO’s Trustee Resolution Project (seeTrustee resolutions – ATO’s review finds 100% compliance’)
    • The director penalty regime and debt collection

    For further information on the meeting, please refer to the 20 September 2012 NTLG meeting agenda which contains preliminary ATO responses. The formal minutes of the meeting will be published on the ATO website in due course.

  • NTLG meeting on 28 March 2012

    On 28 March 2012, Alexis Kokkinos (Pitcher Partners), Tony Stolarek (Ernst & Young) and Karen Liew (Institute) represented the Institute at the National Tax Liaison Group meeting.

    Topics discussed at the meeting included:

    • Global trends in tax administration - The ATO shared their observations from the Forum of Tax Administration, noting the increasing globalisation of dealings, the sharing of information between revenue authorities on how to work smarter and more efficient and the increase need for revenue authorities to work together as a result of globalisation, tax treaties and the exchange of information agreements
    • ATO investigation into professional practice structures - An audit program was being conducted on the issue of professional practices restructuring into a partnership of discretionary trusts. The audit program is a fact finding exercise to understand what was happening and to understand the nature of the restructure so the ATO can develop a view on these structures
    • Unpaid present entitlements and Division 7A test case funding – The ATO’s decision to not support a test case in the manner proposed by the professional bodies was due to their desire to find a ‘live’ case to test the ATO’s view on unpaid present entitlements under Division 7A so that any resulting court decision would not be too narrow in application
    • NTLG Trust Consultation Sub-group governance report – The ATO outlined the key trust issues dealt with by the group in the last 12 months including the decision of Colonial First State Investments Ltd v Commissioner of Taxation, TFN withholding and the legislative amendments to allow the streaming of capital gains and franked distributions to beneficiaries
    • Part IVA changes announced – Concern was raised about the intended reach of the measure as the then Assistant Treasurer’s media release was broad. The ATO thought the dominant purpose test should still remain however they had a problem with the ‘tax benefit’ test under s 177C of Part IVA. Treasury and ATO were only concerned with capturing the extreme avoidance cases
    • Update on Transforming Tax Technical Decision Making in the ATO – To achieve the transformation, the ATO were moving the staff from the Law & Practice division into the Compliance and Operations Business Service Lines. This movement of technical staff should mean that taxpayers and their advisers would be able to access officers with technical expertise earlier in the process
    • Treasury update on emerging law design – Treasury commented briefly on the status of the superannuation law changes, transfer pricing review, consolidation amendments announcement, living-away-from-home allowance changes and thin capitalisation.

    The formal minutes of the meeting will be published on the ATO website in due course. In the meantime, if you require any further information please email the Tax Group.

  • National Tax Liaison Group meeting on 7 December 2011

    On 7 December 2011 Yasser El-Ansary, Tony Stolarek and Alexis Kokkinos represented the Institute at the National Tax Liaison Group meeting. Issues that were discussed included:

    • ATO/private sector consulting arrangements 
    • Tax practitioner engagement 
    • Consolidation rights to future income and residual tax cost setting rules 
    • ATO practices in relation to the publication of non-binding advice or other guidance material 
    • Draft fact sheets on the impact of s 254T of the Corporations Act 2001 on the tax treatment of dividends 
    • Inspector General of Taxation’s recommendations 8.2 and 8.3 – ATO large business risk review and audit policies, procedures and practices 
    • ATO approach to TOFA compliance 
    • Reasonably arguable positions – impact of Allen’s Asphalt Superannuation Fund v FCT [2011] FSAFC 118
  • Update on the impact of s254T of the Corporations Act on the tax treatment of dividends

    In an agenda item submitted to the National Tax Liaison Group for discussion at its 7 December 2011 meeting, the professional bodies sought, among other things, an update on the progress of the draft fact sheets on the impact of s254T of the Corporations Act on the tax treatment of dividends.
     
    As reported in Tax Bulletin Edition 45 (NTLG – Public Rulings Steering Committee meeting 25 November 2011), the ATO has responded by confirming that it has prepared a draft ruling which has been considered by the ATO Pubic Rulings Panel.  This is consistent with comments in Treasury’s discussion paper on the reform to the dividends payment test.   The ATO has indicated that the ruling, when finalised, ‘is expected to be broadly along the following lines:

    • A company subject to the Corporations Act that pays a dividend to its shareholders in accordance with its constitution and without breaching section 254T or Part 2J.1 of that Act that is paid out of current trading profits is not prevented by paragraph 202-45(e) of the ITAA 1997 from franking the dividend merely because the company has unrecouped prior year accounting losses and has lost part of its share capital. That dividend will be assessable income of its resident shareholders
    • A company subject to the Corporations Act that pays a dividend to its shareholders in accordance with its constitution and without breaching section 254T or Part 2J.1 of that Act that is paid out of a capital profit recognised in an asset revaluation reserve in its accounts is not prevented by paragraph 202-45(e) of the ITAA 1997 from franking the dividend provided the company's net assets exceed its share capital by at least the amount of the dividend. That dividend will be assessable income of its resident shareholders. Subject to further consideration and confirmation, the Commissioner is presently of the view that a dividend paid out of capital profits where there is a deficiency of net assets below share capital would be assessable and unfrankable
    • The profits must be available for distribution by way of dividend, and be recognised in accounts of the company properly kept in accordance with the Corporations Act 2001 and accounting standards, and calculated pursuant to them. (It appears to be uncontroversial law that a distribution by a company subject to the Corporations Act to its shareholders that does not comply with section 254T or Part 2J.1 is an unauthorised return of capital.) 

    The tax position of non-resident shareholders is not being dealt with by this ruling, but so far as section 44 and franking is concerned, the ATO view would be along the same lines, subject to questions of source in the case of section 44. However, section 44 is not ordinarily the source of liability for non-residents in respect of dividend income. The ruling will also not deal with companies governed by legislation other than the Corporations Act for obvious reasons.

    The Commissioner is seeking further advice about other scenarios. These are expected to form part of the public ruling but it would be premature to comment on them.’ 
    If members have any comments on the proposed ruling or Treasury’s discussion paper, please email the Tax Group.

     

  • Access without notice NTLG working group meeting on 3 November 2011

    The NTLG working group on access without notice met on 3 November 2011. Susan Franks represented the Institute. Discussion focussed on how to narrow electronic searches. It also discussed the recording of conversations, and the documentation of ATO procedures in relation to implementation of an access without notice.

     

  • NTLG meeting on 14 September 2011

    On 14 September 2011, the NTLG met. The Institute was represented by Yasser El-Ansary, Tony Stolarek and Alexis Kokkinos. The following issues were discussed: 

    • Risk differentiation framework and tax advisers 
    • Risk differentiation framework for taxpayers 
    • NTLG subcommittees scope and operation 
    • Consolidation rights to future income and residual tax cost setting rules 
    • Penalties for false and misleading statements where no tax shortfall arises – current status of guidance and ATO practice 
    • Reportable tax positions – impact on ATO processes 
    • Emerging law design – ATO and private sector roles 
    • ATO’s strategic plan in relation to the new carbon pricing mechanism 
    • Amendments to strengthen company director obligations and deter fraudulent phoenix activity 
    • Transforming tax technical decision making in the ATO 
    • General anti avoidance rulings panel 
    • NTLG sub-committee reports.
  • NTLG Response - Temporary resident rules for New Zealand citizens

    The way in which the ATO interprets the temporary residence rules in respect of New Zealand citizens who have been issued with a Special Category (subclass 444) visa has been the subject of discussion at a number of National Tax Liaison Group meetings since late 2010. The issue, and the views of the Professional Bodies, are set out in a paper prepared by the Tax Institute on behalf of the Professional Bodies and submitted to the ATO.

    The Professional Bodies are meeting with Treasury to discuss this matter further. To facilitate that discussion we would welcome your input, including details of your experiences with the ATO in dealing with this issue. If you have any comments would you please forward them to the Tax Group by 21 September 2011. Any information provided will be treated in confidence.

  • NTLG meeting on 22 June 2011

    On 22 June 2011 Alexis Kokkinos (Pitcher Partners), Tony Stolarek (Ernst & Young) and Susan Franks represented the Institute at the National Tax Liaison Group meeting.

    Topics discussed at the meeting included:

    • Share capital tainting – the ATO will withdraw ATO ID 2009/76 as the reasoning in the ATOID is incorrect.  The ATO considers that it is the substance of a dealing that will determine whether there is a transfer to a share capital account, rather than the specific journal entries used. 
    • Proposed trust tax changes – the ATO has sought to use the ATO website as the key tool for communicating the latest information on the measure.   
    • Publication of ATO submissions to the Federal Court – the ATO does not consider that it can publish its written submissions in any Federal Court matter given that it is possible that the Court may make an order that the submissions remain confidential.   In addition, the ATO is concerned that the publication of the submissions may disclose protected tax information about a particular taxpayer that is prohibited by the new confidentiality provisions except in certain limited circumstances. 
    • SME audits – The ATO has received extra funding for a period of four years to undertake a review of the SME market where turnover is between $100M and $250M (which is 1,300 business groups).  The review is currently in its third year.

    The ATO requested funding to review every entity in this group as it was felt that there was not a good understanding of the risk profile of this segment.   Most of the entities in this group are privately owned (thus there is less publicly available information available) yet often have transactions that are as complicated as those commonly entered into by LBI taxpayers. 

    The ATO has been requesting information such as group structures and financial statements so that it can classify the taxpayer into one of  four broad groupings:

    • Higher risk taxpayers (high likelihood and consequences of non-compliance) – these taxpayers will be subject to continuous review.
    • Key taxpayers  (low likelihood of non-compliance but high consequences of non-compliance – these taxpayers will be subject to continuous monitoring
    • Medium risk taxpayers (high likelihood of non-compliance but low consequences of non-compliance) – these taxpayers will be subject to periodic review
    • Low risk taxpayers (low likelihood and consequences of non-compliance) – these taxpayers will have periodic monitoring

    The ATO has indicated that its review to date has classified most taxpayers as low risk.

  • NTLG meeting on 30 March 2011

    On 30 March 2011 Alexis Kokkinos (Pitcher Partners), Tony Stolarek (Ernst & Young) and Susan Cantamessa represented the Institute at the first National Tax Liaison Group meeting for 2011.

    Topics discussed at the meeting included:

    • The ATO’s approach to imposing penalties for failure to take reasonable care, including the decisions in Sinclair and Shin’s case.
    • In relation to managed funds, whether the ATO will seek to argue that custodians are trustees of trusts given the comments in the Colonial First State case. The ATO confirmed that the ATO has not appealed the decision in the case and that it will prepare a decision impact statement canvassing the various issues considered by the Court, including the ATO’s response to the manner in which the Court dealt with the custodian issue.
    • The ATO practices in relation to managed funds and whether they constitute fixed trusts. The ATO undertook to investigate how it might communicate the need for managed funds which do not satisfy the definition of a fixed trust to seek the exercise of the Commissioner’s discretion where appropriate.
    • The ATO processes for dealing with the proposed new MIT regime. The Professional Bodies highlighted the need for broad engagement with stakeholders, including industry bodies. Implementation of the new MIT regime was highlighted as a strategic issue for the NTLG.
    • The need to update ATO guidance on Part IVA and, in particular Practice Statement PS LA 2005/24, mainly in relation to counterfactuals following recent cases.
    • The NTLG Fringe Benefits Tax Sub-committee provided a governance report outlining its activities since it last reported to the NTLG.
    • The TFN withholding rules for closely held trusts. The Professional Bodies sought to engage the ATO on the application of these rules for 2011 and subsequent years and, in particular, the need to lodge a TFN report for a quarter in which a beneficiary provides their TFN by the last day of the month following the end of the quarter. The ATO indicated that it could not exercise its discretions to effectively allow TFNs to be reported annually in a trust’s tax return to reduce compliance costs and better align with the lodgment program.
    • Whether a foreign income tax offset (FITO) can offset the medicare levy. The ATO’s view is that they cannot but it has agreed to organize a workshop to discuss its view with the professional bodies.

    For further information on the meeting, please refer to the 30 March NTLG meeting agenda which contains preliminary ATO responses. The formal minutes of the meeting will be published on the ATO website in due course. In the meantime, if you require any further information please email the Tax Group.