A teleconference of the external member of the TOFA Working Group was held to identify representatives for the two working parties on Wednesday 8 April 2009.
Confidential consultation with Treasury in respect of Division 775 and Subdivision 960-C: Tony Frost also represented the Taxation Institute in confidential consultation with Treasury on Monday 6 April 2007 in respect of the Government’s 13 May 2008 announcements in respect of Division 775 and Subdivision 960-C of the Income Tax Assessment Act 1997.
Division 250 Working Group: Matt Osmond FTIA (PwC) represented the Taxation Institute at the Division 250 Working Group meeting on Tuesday 7 April 2009. Key issues discussed included
- exclusion from Division 250 (short-term/low value arrangement and debt test);
- indirect payments;
- guaranteed residual value;
- application of thresholds in relation to master lease agreements and similar arrangements;
- effective life of second hand assets;
- effectively non-cancellable, long-term arrangements;
- capital expenditure on depreciable equipment; and
- the level of expected financial benefits test.