Birchstone Brief for the week ended 9 December 2022

ATO Updates

Section 100A – TR 2022/4 & PCG 2022/2 (ATO Guidance Finalised)

The ATO has finalised its guidance regarding section 100A of the ITAA 1936 and how it will approach associated compliance activity. 

TR 2022/4 finalises TR 2022/D1 and sets out the Commissioner’s view regarding reimbursement arrangements and the four basic requirements for section 100A to apply. 

PCG 2022/2 finalises PCG 2022/D1 and sets out the Commissioner’s risk assessment framework and compliance approach to a range of trust arrangements to which section 100A may apply. The purpose of the PCG is stated to be to support trustees with managing their compliance risks with respect to section 100A.

We will provide further analysis regarding these documents in next week’s Birchstone Brief. 

 ATO office closure

The ATO has announced that its offices will close on midday Friday 23 December 2022 and reopen on Tuesday 3 January 2023. 

Tax agents are encouraged to lodge any outstanding returns, statements or forms as early as possible. Documents lodged on or after 20 December are less likely to be finalised before the closure. 

Class rulings issued

The ATO has issued:

  • CR 2022/109 – Virtus Health Ltd – Takeover and special dividend; and 
  • CR 2022/110 – Heidelberg District Community Enterprise Ltd – Off-market share buy-back.


Other News

OECD consultation document on Pillar One of BEPS 2.0

The OECD Secretariat has released a public consultation document regarding the main design elements of Amount B under Pillar One of BEPS 2.0.  Stakeholders are invited to provide feedback on the design, and comments are particularly sought in response to the specific questions outlined in the document and with respect to the overall technical approach to the Amount B design features included in the document.

Interested parties are invited to submit their comments by 25 January 2023. 



Treasury Laws Amendment (2022 Measures No 3) Bill 2022 and associated Bills now law 


all received royal assent on 5 December 2022 and are now law. 

Regulations made providing exceptions from 2-year period of review

The Income Tax Assessment (1936 Act) Amendment (Period of Review) Regulations 2022 (Cth) have been made to exclude certain SMEs with complex tax affairs or significant international dealings from the 2-year period of review for income tax assessments. The regulations apply to assessments lodged after 9 December 2022 that relate to income years starting on or after 1 July 2021.

Exposure draft regulations and explanatory materials were released for public consultation in August 2022 (and covered in the Birchstone Brief for the week ended 19 August 2022). 

Exposure draft legislation and explanatory materials: Australia-Iceland tax treaty

The government has released exposure draft legislation and explanatory material to implement the tax treaty signed between Australia and Iceland on 12 October 2022. 



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