Chartered Accountants Australia and New Zealand welcome the opportunity to comment on the ATO Decision Impact Statement regarding BPFN and the Commissioner of Taxation.

We believe this decision provides the ATO with the opportunity to take a more pragmatic and commercial approach regarding the matters considered by the Commissioner when forming the opinion that income is not non-arms-length income. We encourage the ATO to take this opportunity.

As a result of the decision, we also recommend that the ATO considers what changes are required to guidance material relating to NALI to reflect the decision and this be noted in the ‘Implications for impacted advice or guidance’ section of the DIS. In particular, TR2006/7 needs to be updated to reflect the ATO’s approach to the matters it may consider relevant when forming the opinion that income is not NALI in light of the AAT decision.