Welcome to the September 2010 issue of EBIT (Emerging Business, Innovation and Tax).
Before we delve into the contents of this edition, we would like to highlight a recent development in GST law. Tax consolidated groups have long been able to enter Tax Sharing and Funding Agreements (for income tax purposes). A recent development in GST law now allows a similar agreement, called an Indirect Tax Sharing Agreement (ITSA), to be entered into by GST groups. An ITSA allows group members to remove joint and several liability for the entire GST liabilities of the group and provides exiting group members (e.g. on sale of a subsidiary) with the ability to obtain a "clear exit" from GST liabilities of the group since the ITSA was entered into. Purchasers in M&A transactions will almost certainly require an ITSA to be in place. Click here for a link to a copy of our recent legal update that contains more information about ITSAs.
In this edition:
- we examine the impact of the Cartel Provisions introduced into the Trade Practices Act in July 2009
- we consider the taxation implications of the changes to the Corporations Act, regarding the payment of dividends
- we look at developments in Division 7A with the ATO releasing its new ruling TR 2010/3 and draft Practice Statement PSLA 3362
- we review the ATO's use of data-matching technology to cast a closer eye over trust deeds to ensure the right parties are paying tax on distributions, and
- we report on the Victorian SRO's new ruling regarding the application of the controversial lease duty provisions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.