Shorten releases discussion paper on proposed income tax laws

income-tax/assistant-treasurer/government/treasury/

8 December 2010
| By Milana Pokrajac |

The Assistant Treasurer and Financial Services Minister, Bill Shorten, has released a discussion paper around the proposed changes to the income tax laws, which the Government said would make demerging and restructuring easier for consolidated groups and multiple entry consolidated (MEC) groups.

Under the new changes, if the demerged entities form a new group following a demerger undertaken by a consolidated or MEC group, the tax costs of assets held by subsidiary members of the new group will be retained.

The Government also stated that any capital gain that would otherwise arise because a demerged entity has net liabilities at the time of a demerger would be disregarded.

These changes will apply to demergers that took place after 9 November, 2010 — the date that the changes were announced in the Mid-Year Economic and Fiscal Outlook 2010-2011, the Treasury stated.

If a demerger took place on or before 9 November, 2010, any liabilities that were extinguished as a result of the demerger will be excluded from the consolidation tax cost setting calculations.

The closing date for submissions on the discussion paper is 28 January, 2011.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 2 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks 1 day ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 2 days ago

TOP PERFORMING FUNDS