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NOTICE

Senator Watson, by leave, gave a Notice of Motion, as follows: To move on the next day of sitting-That the Senate-

(a) notes that the new fringe benefits and capital gains taxes are administrative nightmares, impose on business a massive paper burden, contain inequities and inconsistencies and should be repealed;

(b) calls on the Federal Government to introduce legislation to remove all anomalies and problems confronting:

(i) isolated local councils,

(ii) mining operations,

(iii) other businesses operating in remote areas and overseas destinations,

(iv) the elderly and infirm,

(v) non-profit making organisations, and

(vi) small businesses;

(c) calls upon the Government to make plain its intention to deal with anomalies and apparently unintended effects of the Income Tax Assessment (Capital Gains) Act 1986, particularly sections 160zzs, 160zzt and 160zl, and to amend the legislation to give proper effect to shareholders' rights; and

(d) notes with concern that the Commissioner of Taxation has issued a ruling known as IT No. 2121 which:

(i) appears to catch those family arrangements which have been legitimately established with the purpose of providing limited liability to family assets such as the family home or to provide a ""going concern'' legal entity for the contractors' business, and

(ii) in many cases has been employed by the Commissioner of Taxation to penalise contractors whose circumstances do not warrant such heavy-handed treatment.