Open for Consultation – Employee Share Schemes and Employee Remuneration Trust Arrangements

about 1 month ago
CLOSED: This discussion has concluded.
Updated: Friday 9 June 2017

As a response to feedback from the community, we recently published Draft Ruling TR 2017/D5 Income tax: employee remuneration trusts to replace Draft Ruling TR 2014/D1 Income tax: employee remuneration trust arrangements. The ATO views in TR 2017/D5 have not changed in any significant way from those expressed in TR 2014/D1 except that TR 2017/D5 does not deal with employee share schemes (ESS).

The ATO view about dividend equivalent payments made by a trustee under an ESS is now represented in Draft Tax Determination TD 2017/D2 Income tax: when will a dividend equivalent payment, made by a trustee under an employee share scheme that delivers ESS interests taxed by Subdivision 83A-B or 83A-C of the Income Tax Assessment Act 1997, be assessable as remuneration under section 6-5?

We have also released an associated Draft Practical Compliance Guideline PCG 2017/D9 Dividend equivalent payments made by a trustee under an employee share scheme. This will provide certainty for employees that a dividend equivalent payment will not be assessable to them as remuneration where the conditions outlined in PCG 2017/D9 are met.

We invite you to provide comments on Draft Ruling TR 2017/D5 by 21 July 2017, and comments on the views expressed in Draft Tax Determination TD 2017/D2 and Draft Practical Compliance Guideline PCG 2017/D9 by 7 July 2017.