New ATO rulings, determinations, decisions and guides – June 2017

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

TD 2017/11
Taxation Determination TD 2017/11 clarifies that interest income derived from a bank account is assessable to the taxpayer or taxpayers who beneficially own the money in that account.

TD 2017/13
Taxation Determination TD 2017/13 clarifies that where a taxpayer builds a dwelling on pre-CGT land on or after 20 September 1985, they must make a choice under s118-150 in order to claim the main residence exemption on the dwelling during the period of construction.

TD 2017/14
The car parking threshold for the 2017-18 FBT year is $8.66. The threshold was $8.48 in 2016-17.

PCG 2017/5
Practical Compliance Guideline PCG 2017/5 outlines the circumstances in which the ATO will not apply compliance resources to review commutations made before 1 July 2017 by a member of a SMSF to avoid exceeding the $1.6 million transfer balance cap. Three examples are shown in the release

TR 2017/D3
Draft Taxation Ruling 2017/D3 clarifies the tax treatment of rights granted and retail premiums paid to retail shareholders in connection with renounceable rights offers. This ruling only applies to the extent that the rights and retail premiums relate to shares held on capital account.

TR 2017/D4
Draft Taxation ruling 2017/D4 explains the Commissioner’s preliminary view in relation to when a corporate limited partnership “credits” an amount to one of its partners within the meaning of 94M of the ITAA36.

PCG 2017/D4
Draft Practical Compliance Guideline PCG 2014/D4 sets out the compliance approach of the ATO to the taxation outcomes associated with a “financing arrangement”, or a related transaction or contract, entered into with a cross-border related party.