Treasury to clamp down on tax abuse by dividend stripping
But critics say this could focus on transactions that should not be considered, such as the issue of shares for an employee share-ownership plan
The Treasury plans to tighten the anti-avoidance rules dealing with dividend stripping to target tax abuse, but there are fears that it might be casting its net too wide with the result that the proposed measures would also hit other unintended transactions.
The proposed changes are contained in the first batch of the draft Taxation Laws Amendment Bill, released for public comment by the Treasury in June. They were mentioned in the budget review tabled in parliament in February and will come into effect retroactively from the date of the announcement (February 20 2019) and apply to dividend stripping schemes entered into on, or after, this date...
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