Board of Taxation extends act review
The Board of Taxation will extend its review of a section of the Income Tax Assessment Act 1936 to include the tax framework in which private business operates.
"The board will examine the tax implications of the way that small businesses choose to operate, giving particular consideration to areas where there may be inequitable outcomes and where the system could be simplified for the benefit of small business," the Federal Assistant Treasurer, Senator Arthur Sinodinos said.
He announced the Board would be reviewing Division 7A of Part III of the Act and has proposed three models for addressing the Division 7A reform.
But he has warned that each of the options proposed has complexities associated with it.
"The board's examination of Division 7A highlights that complexities can arise because of the Division's interaction with other areas of the tax code and its operation in the context of private group tax arrangements," Sinodinos said.
The ministry has recommended the board should examine how Division 7A operates, including its interaction with other areas of the tax law.
It has also asked the board to look into whether the current operation of Division 7A is producing unintended outcomes or disproportionate compliance and administration costs.
The board's report should consider revenue implications of different options and propose ideas that minimise revenue cost, the ministry said.
The board will provide the Government with a final report by 31 October 31.
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
