Skip to main content

Your shopping cart is empty

11 Aug 06 NTLG IFRS Sub-committee

Ray Conwell (Deloitte Lawyers) represented the Taxation Institute at the National Tax Liaison Group (NTLG) IFRS Sub-Committee meeting on Friday 4 August 2006 in Sydney. The key issues were that:

- a draft discussion paper on impact of IFRS on exit cases and valuation of liabilities is being prepared for consideration by the Consolidation NTLG Committee;
- the ATO’s Trust Project is looking at impact (if any) of IFRS on the meaning of “trust income” in s 97. It is also considering the issue of whether amendments to unit trust deeds to make them IFRS compliant will lead to trust resettlement (according to ATO view) or result in failure of fixed trust test;
- The ATO is preparing a Practice Statement on the way the ATO will administer thin capitalisation transitional rules. The Practice Statement will setout the ATO’s concessionary approach to using AGAAP standards by ensuring that companies do not have to keep separate AGAAP and AIFRS accounts.  
- Trading Stock: Under IFRS settlement discounts and volume rebates are treated as an offset of the cost of trading stock unless they are a real reimbursement of promotional costs, etc.  ATO is to prepare a discussion paper on whether and how this might impact on trading stock treatment for tax purposes;
- In respect of Share Capital Tainting, the members called for an “ATO Product” on meaning of “Share Capital Account” and the expression “transfer” in the new tainting provisions, as companies may inadvertently taint their SCAs by making IFRS adjustments under 1052 and other IFRS standards; and
- It is expected that the IFSR compliance focus in the ATO Compliance program (which will be released on 18 August 2006) will be on cases where accounting profit under IFRS is substantially less than taxable income, as could be expected that opposite would be the case.

Media Release Search
Eg. TD 2005/D52 ALL words EXACT phrase WITHOUT words Date range
From To