New ATO rulings, determinations, decisions and guides — August 2017

The following key Taxation Rulings, Taxation Determinations, Interpretative Decisions and Law Companion Guides have recently been released:

PR 2017/6

Public Ruling PR 2017/6 sets out the Commissioner’s opinion on the way in which the relevant provisions apply to the defined class of entities who take part in a discounted home loan interest rate calculated under Loan Reducer.

TR 2017/2

Taxation Ruling 2017/2 details the effective life of depreciating assets from 1 July 2017, replacing TR 2016/1.

TR 2017/3

Taxation Ruling 2017/3 provides guidance on applying the participation test in Subdivision 768-A when working out whether an equity distribution received by an Australian corporate tax entity from a foreign company is NANE income.

TR 2017/D6

Draft Taxation Ruling 2017/D6 sets out general principles for determining whether an employee can deduct travel expenses under s 8-1 of the ITAA97.

TD 2017/17

Taxation Determination 2017/17 states the benchmark interest rate for the year of income that commenced on 1 July 2017 as 5.30%.

TD 2017/18

Taxation Determination 2017/18 states the car limit for 2017-18 is $57,581.

TD 2017/D3

Draft Taxation Determination 2017/D3 discusses whether section 109T of the Income Tax Assessment Act 1936 can apply to a payment or loan made by a private company to another entity (the first interposed entity) where that payment or loan is an ordinary commercial transaction.

TD 2017/19

Taxation Determination 2017/19 details the reasonable travel and overtime meal allowance expense amounts for the 2017-18 income year.

TR 2017/4

Taxation Ruling 2017/4 is about the taxation of rights granted, and Retail Premiums paid, to retail shareholders in connection with renounceable rights offers. It applies only to the extent the rights and Retail Premiums relate to shares held on capital account. It covers the tax treatment of Australian resident Eligible shareholders and foreign resident Ineligible shareholders.

PCG 2017/D12

Draft Practical Compliance Guideline 2017/D12 is intended to provide the legal personal representative (LPR) of a deceased person with certainty about the extent of the deceased’s outstanding tax liabilities for the period up to the time of their death.