Division 6C Consultation Paper Released - Valuable Changes Proposed.The Labor Government has released an Industry Consultation Paper which requests comment on proposed changes to Division 6C. The main proposal is to introduce a "25% safe harbour" to allow 25% of Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. Real Estate Investment Trusts' ("AREITs") income to be classified non-rental income without the AREIT being taxed as a company. It is hoped that the easing of the restrictions in Division 6C will allow AREITs to operate more easily in the global market. Details Public unit trusts conducting trading businesses will be taxed as a corporate entity pursuant to Division 6C. The current wording of Division 6C has several ambiguities which has caused concern among the industry. In particular, the current provisions provide that an eligible investment business (a business that will not trigger Division 6C) includes an investment in land for the purpose, or primarily for the purpose of deriving rent. Currently, there are no guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. to explain what will constitute as "primarily". Hence, the paper outlines a proposal to replace the "primary purpose test" with a safe harbour test. The safe harbour test would allow public unit trusts an allowance of up to 25% for gross non-rental income (excluding capital gains) per annum Per annum Yearly. . Another area which has caused concern to the industry in the current application of Division 6C is the definition of rent. The paper states that it would be appropriate to clarify that the concept of rent covers only rental and similar payments payable as a passive investment return for the right to use the land. In our opinion the paper has not adequately dealt with the issue of what constitutes 'rent' and we will be seeking further clarification regarding this. Finally, the Government proposes to expand the range of financial securities that can be invested in without triggering Division 6C. The definition of financial arrangements provided in Tax Law Amendment (Taxation of Financial Arrangement) Bill 2007 (which has now lapsed LEGACY, LAPSED. A legacy is said to be lapsed or extinguished, when the legatee dies before the testator, or before the condition upon which the legacy is given has been performed, or before the time at which it is directed to vest in interest has arrived. Bac. Ab. Legacy, E; Com. Dig. ) will be used as a basis to determine which investments will be within the range of financial securities for the purpose of Division 6C. A full copy of the consultation paper can be found at: http://www.treasury.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. .au/contentitem.asp?Navld=&ContentID=1347 The review by the Board of Taxation s still in progress and the Treasury has encouraged members of industry to comment on the consultation paper by 17 March 2008. Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. Stephens will be providing comments to the Treasury and do encourage others to do so. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Ms Colleen col·leen n. An Irish girl. [Irish Gaelic cailín, diminutive of caile, girl, from Old Irish. Dillon Moore Stephens Level 14, 607 Bourke Street Melbourne Victoria 3000 AUSTRALIA Tel: 38635 1858 Fax: 39629 5716 E-mail: info@moorestephens.com.au URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : www.moorestephens.com.au Click Here for related articles (c) Mondaq Ltd, 2008 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion