Issue 166, 1 February 2008

Welcome to the latest issue of Thomson’s Tax & Accounting Insight, your free news service for tax and accounting professionals.

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Articles in this edition include:

• Tax Commissioner on tax administration plans for 2008

• Trust cloning

• CPI: December quarter 2007 indexation factor

• Thomson Tools

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Tax Commissioner on tax administration plans for 2008

The Commissioner gave a speech on 24 January 2008 about tax administration and launched the fifth edition of the Tax Office’s Making it easier to comply booklet, which provides an annual progress report and the Tax Office’s commitment on reducing the tax compliance burden. The Commissioner said the booklet outlines in detail current and proposed improvements in Tax Office administration. Mr D’Ascenzo noted that the Tax Office had made many improvements, particularly in relation to tax agents. Other points of interest raised by the Commissioner include:

• Technical issues: A pilot ‘professional to professional’ service will be commencing shortly aimed at meeting tax agents’ requests to resolve technical issues directly with senior tax officers.

• Online portals: The Tax Office is making further progress on security arrangements for the tax agent portal. The Tax Office is also exploring how it can increase the attractiveness of the business portal.

• Lost superannuation: The Tax Office is looking to introduce an updated lost member register online facility that incorporates search and portability functionality. The Commissioner said he expects this will be available in 2009/10.

For the full text of the Commissioner’s speech to the Australasian Tax Teachers’ Association Conference on 24 January 2008, click here.

This article appeared in Thomson’s daily Latest Tax News (Thursday 24th January 2008). With tax fast-moving and ever changing — every day, practitioners rely on Thomson’s daily Latest Tax News for quick, accurate, comprehensive information — no compromises. When you need to know what’s new in tax and related news every day, there’s only one place to look — LTN. 
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Trust cloning

Trust cloning refers to the practice of transferring an asset between two trusts that have the same beneficiaries and terms. Generally, when an asset is transferred between two trusts, CGT implications will be triggered. However, where the beneficiaries and terms of the two trusts are similar, a CGT exception applies.

The Tax Office previously released a Taxation Ruling that provides its view on when the CGT exception applies. Since the release of the ruling, the Tax Office has become aware of examples where trusts, particularly discretionary trusts, may not be the same and therefore assets transferred between the trusts will trigger a CGT event.

The Tax Office is encouraging taxpayers or their advisers who have relied on the exception, but who are now concerned that the exception test was not satisfied, to contact it or lodge a private ruling.

This article appeared in Thomson’s Client Alert Newsletter Service. Client Alert is a monthly newsletter that promotes your business and develops your client’s awareness of upcoming tax issues. To find out more, phone Thomson Customer Service on 1300 304 197 or click here.

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CPI: December quarter 2007 indexation factor

The CPI indexation factor, which is now only used for FBT purposes concerning remote area benefits (under sections 60 and 60AA of the Fringe Benefits Tax Assessment Act 1986), for the December quarter 2007 rose 1.5 points over the September 2007 quarter to 160.1. Inflation was running at 3% through the year to the December quarter 2007.

For more information about the December CPI, please click here to see the report from Australian Bureau of Statistics Catalogue 6401.0, released 23 January 2008.

This news article appeared in FBT Compliance Toolkit’s fortnightly news alert — ensuring subscribers keep pace with developments in FBT. FBT Compliance Toolkit is the complete solution to managing and processing up-to-date FBT returns. Supported by an annually updated user guide, helpline and FBT compliance guide, you’ll be well equipped to complete and lodge FBT returns after 31 March.

To obtain more information, or to subscribe, simply contact your nearest Thomson representative, call 1300 304 197 or click here.

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Thomson Tools

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