Monthly Archives: December 2016

ATO guidance

ATO guidance on foreign resident capital gains withholding tax

The ATO amended its instructions to taxpayers seeking a reduced withholding tax rate on the sale of property on 6 December 2016.

The amended instructions include examples of the supporting information that should be included in an application, which is dependent on the reasons for variation of rate.

Non-portfolio dividend exemption participation test

The ATO has released two draft taxation determinations regarding the application of Subdivision 768-A of the Income Tax Assessment Act 1997 (Cth) (ITAA97) to Australian corporate tax entities which are either a partner of a partnership (TD 2016/D6) or a beneficiary of a trust (TD 2016/D7). The determinations consider the same issue, being whether these partners or beneficiaries can hold a direct control interest within the meaning of section 350 of the ITAA97.

The draft determinations state that partnerships and trusts can be taken to ‘hold’ a direct control interest in a foreign company for the purpose of satisfying the 10% participation test in s 768-15.

Accordingly, depending on their own participation in the partnership or trust, if a partner or beneficiary Australian corporate tax entity receives a distribution from a foreign company, section 768-5 may deem the distribution is non-assessable non-exempt income.

Legislation

Every year the festive season brings a spike in claims against employers and employees, with claims around health and safety, bullying, sexual harassment, inappropriate behaviour and more.

How can employers minimise their risks and avoid the festive season becoming the silly season?

Most claims arise from work social functions, including Christmas parties, and often have far-reaching consequences. Claims often take many months to resolve, with a great deal of stress experienced from all sides. People might lose their jobs, and employers may take a significant financial or reputational hit.

First step – policies

Proper policies on work-related social activities are most critical and must be in place. Policies are most effective when using examples of inappropriate behaviour.

Policies need to be known and understood throughout the organisation; there’s no point in having them at the bottom of a drawer somewhere.  Workplace behaviour training in conjunction with the policies is an important step to take and can be conducted in person or online, via intranet, webinars and so on.

Good policies will include clear complaint handling procedures. Experience shows that when staff know how to make a complaint they are more likely to make it earlier, resulting in swift action, rather than letting the issue fester and become worse.