New ATO rulings, determinations, decisions and guides

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

TR 2017/D8  The ATO has released an explains the methods acceptable to the Commissioner for returning income derived and recognising expenses incurred in long term construction projects. This draft ruling affirms that the completed contracts method remains unacceptable under the income tax law.

TD 2017/20  Taxation Determination 2017/20 clarifies the question “is a person who is not a beneficiary of the trust capable of having a distribution made to them for the purposes of section 272-60 of Schedule 2F to the Income Tax Assessment Act 1936?”

TD 2017/21  Taxation Determination 2017/21 states that where an Australian corporate tax entity is a partner in a partnership, the partnership can ‘hold’ a direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936) in a foreign company for the purpose of Subdivision 768-A of the Income Tax Assessment Act 1997?

TD 2017/22  Taxation Determination 2017/ states that where an Australian corporate tax entity is a beneficiary of a trust, the trust can ‘hold’ a direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936 ) in a foreign company for the purpose of Subdivision 768-A of the Income Tax Assessment Act 1997 .

TD 2017/19A1 – Addendum  The ATO has released an addendum to TD 2017/19 which provides separate reasonable travel allowance expense amounts for breakfast, lunch and dinner for employee truck drivers for the 2017-18 year.

TD 2017/22A1 – Addendum  The ATO has released an addendum to TD 2017/22 to clarify its date of effect.

TR 2017/D7  Draft Taxation Ruling 2017/D7 sets out the Commissioner’s preliminary, but considered, views on when a company carries on a business within the meaning of section 23AA of the Income Tax Rates Act 1986 (ITR 1986).