Reports today that the Australian Taxation Office (ATO) has broadened the interpretation of company tax cuts are premature.
The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, said the ATO has issued a draft ruling and will in due course provide other guidance.
“As always it is up to the ATO to determine how the law applies and in this case whether a company is carrying on a business or not,” Minister O'Dwyer said.
“However, the policy decision made by the Government to cut the tax rate for small companies was not meant to apply to passive investment companies.”
“If any further direction is required on the Government's policy intention by the ATO it will be provided by the Government.”
“At the end of the day the Government wants to see lower taxes on small and medium businesses.”