As reported last week, Mark Molesworth FTIA (BDO Kendalls) and Tax Counsel, Angie Ananda FTIA attended the NTLG Losses and CGT Subcommittee on Friday, 11 June 2010. In summary, the main points from the meeting were as follows:
- The Dick Smith ruling is in the final approval stages and will be published shortly;
- The draft ruling on earnouts (TR 2007/D10) will not be finalised until the recent Government announcement is dealt with by legislative amendments. There will also be no compliance activities on this issue until the legislative clarification;
- Consultation will commence in relation to the tax treatment of the incorporation of professional practices; and
- Based on the ATO compliance program the focus areas for the ATO will include the use of tax losses, the main residence exemption, returning capital gains on share sales, CGT small business concessions, non-resident disposals, mergers and acquisitions, the interaction with Division 855 and other provisions and the interactions between the CGT and consolidation provisions.