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ATO Updates Guidance on Taxes and Transactions that Attract Their Attention — Orbitax Tax News & Alerts

The Australian Taxation Office (ATO) published updated guidance on 27 July 2021 concerning Transactions and taxes that attract their attention. This includes guidance in relation to:

  • Bad debts
  • Capital gains tax
  • Commercial debt forgiveness
  • Deductions
  • Excise and excise equivalent goods
  • Franking credits
  • Fringe benefits tax
  • Private assets or private pursuits in business
  • Private company benefits
  • Revenue losses
  • Taxation of financial arrangements

The guidance generally applies in relation to privately owned and wealthy groups, which are viewed as:

  • companies and their associated subsidiaries (often referred to as economic groups) with an annual turnover greater than AUD 10 million, that are not public groups or foreign owned; and
  • resident individuals who, together with their business associates, control net wealth over AUD 5 million.

Further guidance is also provided for other areas that attract the ATO's attention, including Non-lodgment, Business structure, Tax crime.