ATO: Tax issue consultations for November 2022
The ATO has advised that it plans to seek formal comment on the following issue under its consultation program in November 2022: the meaning of “legally and economically independent” under the excise refund scheme; car parking fringe benefits; and the Commissioner’s discretion to determine that an entity does not control another entity. The ATO also advised that “if you are concerned about the delay in the delivery of particular pieces of public advice and guidance, email Australia Tax Super at”.

Taxpayer appeals s 100A reimbursement agreement decision
It has been reported that the taxpayer has appealed to the Full Federal Court against from decision in BBlood Enterprises Pty Ltd & Anor v FCT [2022] FCA 1112. In that case, the Federal Court held that a share buy-back scheme undertaken by a company, which involved the distribution of retained earnings to the discretionary trust that owned it, was a “reimbursement agreement” under s 100A of the ITAA 1936. The Court held in the alternative that the deemed dividend component of the scheme was part of a “dividend stripping operation” as defined by s 207-155 of the ITAA 1997.

Federal Budget Report for Tax and Superannuation Professionals
The election of the Australian Labor Party to Federal Government in May brought about a second Federal Budget announcement for FY 22-23, to be handed down on Tuesday 25 October.