close
Share with your friends

ATO Halloween ruling unmasked

ATO Halloween ruling unmasked

KPMG’s Hayley Lock examines Taxation Ruling TR/2018/7 which covers the Commissioner of Taxation’s view of how the tax law applies to certain employee remuneration trusts.

1000
Hayley Lock

Partner, People Services

KPMG Australia

Contact

Also on home.kpmg

tax calculations

After a gestation period of more than four years, on 31 October, the Commissioner of Taxation released the final version of Taxation Ruling TR/2018/7, covering the Commissioner’s view of how the tax law applies to certain employee remuneration trusts (“ERT”).

The best piece of news comes on the first page, where the ruling confirms that trusts used in employee share schemes covered by Division 83A of the Income Tax Assessment Act 1997 are outside of its scope. This was not so clear in the first draft of the ruling issued in 2014.

Further good news comes in the form of a clear statement that a fringe benefit cannot arise from a step (such as a contribution to an ERT) in a series of steps whose objective is to deliver salary and wages to employees.

However that’s about where the good news ends.

To continue reading this article, please log in or register for KPMG Tax Now.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Liability limited by a scheme approved under Professional Standards Legislation.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal