The ATO has focussed in on trustee TFN reporting and withholding, an area that has had very little attention in previous years.
Plus, the new law companion ruling clarifying the use of the similar business test that complements the same business test enabling companies to utilise tax losses, capital losses and bad debt deductions. And, what the ATO has to say about deductibility of penalty interest.
Members, download the fullJune 2019 Tax Round Upfrom the member-only website. To see what Knowledge Shop membership offers, call Lee or Clare on 1800 800 232 or take an online tour.
Join Michael Carruthers (Tax Director, Knowledge Shop) and Lisa Armstrong (MD, Knowledge Shop), for just the juicy bits of change for accountants and advisers:
ATO focus on beneficiary TFN reporting - Trustees of closely held trusts have some additional reporting obligations outside the lodgement of the trust tax return each year. The ATO has indicated that it is currently reviewing trustees to ensure their compliance with these obligations, particularly the requirement to lodge TFN reports for beneficiaries.
Guidance on the new similar business test - LCR 2019/1 - The similar business test has been introduced to complement the same business test in determining a company’s ability to utilise tax losses, capital losses and bad debt deductions.
When is penalty interest deductible to the borrower? TR 2019/2 explores the issue.