Large unpaid debts and continuing defaults by borrowers require the banks and financial institutions to initiate proceedings for recovery of dues against the principal borrowers as well as the guarantors under various legislations and forums, including the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 for enforcement of security against the guarantors and under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 before the Debt Recovery Tribunals for recovery of debt against the guarantors. The Insolvency and Bankruptcy Code, which came into force on December 1, 2016, as a consolidated legislation to deal with insolvent and bankrupt persons, both natural and artificial, is also assisting the financial institutions to initiate corporate debt resolution process against guarantors.
In case you hadn’t heard, the Final Report of the Financial Services Royal Commission was delivered by Mr Ken Hayne on Friday 1 February, and published on Monday 4 February.
Single entity rule confirmation from the ATO
On 30 January 2019, the ATO issued TR 2004/11A1 as an Addendum to ruling TR 2004/11 on the interaction of the tax consolidation ‘single entity rule’ in the context of applying the tax anti-avoidance provisions contained in Part IVA of the Income Tax Assessment Act 1936 (Tax Act) (Addendum).
The National Housing Finance and Investment Corporation (NHFIC) is providing much needed ammunition to those fighting for more affordable housing in Australia.
Leading independent business law firm Hall & Wilcox has strengthened its national litigation and dispute resolution practice with the appointment of new Special Counsel Scott Meacock, who joined the firm on 4 February.
The recent death of the CEO of a multi-million dollar cryptocurrency exchange start-up, who held the passwords to $275 million worth of coins and cash, has again highlighted the importance of succession planning for your digital assets and the difficulties that can arise when this is not properly addressed.
Banking royal commission: unclear tax treatment for payouts
The Tax Institute has warned of uncertain tax implications for refunds and compensation payouts resulting from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Funds and financial products
Financial Services Royal Commission final report
On 4 February, the final report of the Royal Commission into the Misconduct in the Banking, Superannuation and Financial Services Industry was released to the public.
What opportunities and risks International Coin Offerings (ICOs) pose for Australia and whether our regulatory framework is well placed to manage those opportunities and risks is the subject of an Issues Paper released by Treasury in the most recent regulatory response to the growing digital environment and structural changes in financial services markets. Interested parties can make submissions by 28 February 2019.