Law Council of Australia

Business Law Section

Draft amendments to Taxation Ruling TR2022/4 and Practical Compliance Guideline PCG 2022/2 post Guardian and BBlood

This submission concerning the Commissioner’s proposed amendments to TR2022/4 and PCG2022/2 is made by the Taxation Committee of the Business Law Section of the Law Council of Australia (the Committee).

The key matters the Committee wishes to raise concern about are the Commissioner’s language used to describe the scope of an ‘agreement’ and the potential for advisors to become parties to an agreement, in circumstances where the parties merely act in accordance with the advice. The broad propositions put by the Commissioner in respect of these issues are not completely supported by the footnoted references and are likely to mislead stakeholders, particularly those tax agents and accountants who are not legal practitioners.

The proposed changes appear to be limited to buttressing the ATO’s pre-existing views of ‘agreement’, rather than making changes to incorporate the full benefit of guidance to be derived from recent case law.

Accordingly, feedback is provided (by reference to that recent case law) on both:

  1. the changes proposed to be made; and
  2. those aspects of the ATO’s views that are not proposed to be changed.

You can read the full submission below.

Last Updated on 16/10/2023

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