I know the ATO is famous for wasting others time but what about when they waste their own time…
Today (18 October) the ATO released a draft Taxation Ruling (TR 2017/D7) titled “Income tax: when does a company carry on a business within the meaning of section 23AA of the Income Tax Rates Act 1986?” It is 78 paragraphs and 25 pages long, with 8 very detailed examples… Remember its purpose is to help us understand what the word “business” means in section 23AA… And then…
Today (18 October) the Government released a Bill into Parliament titled “Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017“. This Bill repeals section 23AA of the Income Tax Rates Act 1986 and replaces it with the following:
23AA Meaning of base rate entity
An entity is a base rate entity for a year of income if:
(a) no more than 80% of its assessable income for the year of income is base rate entity passive income; and
(b) its aggregated turnover (within the meaning of the Income Tax Assessment Act 1997) for the year of income, worked out as at the end of that year, is less than $25 million.
Did you notice that a certain word will no longer exists in section 23AA once this Bill receives Royal Assent? That is correct, there is no “business” word anywhere in the section.
So on the same day the Commissioner asks for feedback on his 25 page ruling on what the word “business” means in section 23AA, the Government introduces a Bill that will remove the word “business” from section 23AA.
Priceless…
TaxRambling.com 
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