Resource Capital Fund IV LP v CofT – US private equity funds, structured as Caymans limited partnerships, not taxed on profit from sale of shares in Australian Lithium mining and processing company

On 5 February 2018, the Federal Court set aside the Commissioner’s assessments, issued to two limited partnerships, for profits they made on their respective investments in the shares of an Australian mining company: Talison Lithium Limited (Lithium Co). In 2007, two limited liability partnerships: Resource Capital Fund IV LP (Resource IV) and Resource Capital Fund…

Draft legislation to give legal effect the ‘Multilateral Instrument’ in Australia – Amendment to International Agreements Act to include the MLI like any other bi-lateral agreement

On 8 February 2018, Treasury released draft legislation to give the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) the force of law in Australia. Treasury have asked for submissions by 23 February 2018. On 7 June 2017, Australia signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent…

Cassaniti v CofT – employee entitled to credits for PAYG amounts “withheld” from her salary or wages, despite her employers not remitting the withheld amounts to the ATO

The Federal Court has ruled that PAYG amounts were “withheld” from a taxpayer’s salary or wages, so that she was entitled to a tax credit, despite the amounts never being remitted to the ATO by her employers. Justice Robertson, summarised the issues and facts this way: The applicant, Mrs Mariolina Cassaniti, seeks declarations that she…

Draft Treasury Laws Amendment (Measures # ??) Bill 2018 – Small Business CGT concession ‘integrity’ measures, on sale of shares or units: ‘see through’ active assets test; new taxpayer requirement; new ‘object entity’ requirement (to carry on business)

On 8 February 2018, Treasury put up, an exposure draft of the Treasury Laws Amendment (Measures # ??) Bill 2018, on its website. This Bill proposes amendments to to deal with ‘integrity’ concerns for the small business CGT concessions‘. The Draft is for consultation, and Treasury will take submissions, until 28 February 2018. [Treasury website: Consultation…

Treasury Laws Amendment (2018 Measures No 2) Bill 2018 – various amendments to the requirements for venture capital tax concessions – Early Stage VCLP and ‘Early Stage Innovation Companies’

The Government introduced the Treasury Laws Amendment (2018 Measures No 2) Bill 2018 into the House of Reps this Thur 8.2.2018 to implement the this previously announced measure (and one other, which I will not be covering). Venture capital and early stage investors – amendments to the venture capital and early stage investor tax concession provisions…

Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 2) Bill 2018 – CGT changes – excluding non-residents from ‘main residence’ exemption; avoiding double counting for Div 855 ‘principal asset’ test; additional 5% discount for ‘low cost housing’

The Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 2) Bill 2018 was introduced in the House of Reps on Thur 8.2.2018. It will effect 3 main changes. Prevent ‘non-residents’ claiming the CGT ‘main residence’ exemption Inserting a new provision into the Div 855 ‘principal asset’ test (in s855-30 of the ITAA97), so…

Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 – 80% passive income test (to retain 30% tax/franking rate) passes Lower House with one Government Amendment

The House of Representatives passed the Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017  on Thur 8.2.2018, with 1 Government amendment. The purpose of the Bill is to change the basis on which a company can retain the 30% tax rate. This is for companies that otherwise qualify for the lower 27.5% tax/franking…

Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 passes Lower House – providing remaining 8 years of Government’s reduction in tax rates – down to 25% for all companies

On Thursday 8.2.18, the House of Representatives passed the Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017,  without amendment, and the Bill now moves to the Senate. The Bill provides for the remaining 8 years of the Government’s plan to reduce tax rates down, so that all companies pay tax at a 25%…

Treasury Laws Amendment (2018 Measures No 1) Bill 2018 – introduced – super fund merger relief to 30 June 2020; ATO to approve ‘early releases’; extend cost recovery by Super Levy; payments to members with a ‘terminal disease’

On Wednesday 7.2.18, the Government introduced the Treasury Laws Amendment (2018 Measures No 1) Bill 2018, Schedules 1, 2 , 3 & 4 of which propose the following superannuation related amendments. Relief for merging super funds – the Bill proposes to amend the ITAA 1997, the Superannuation Laws Amendment (Capital Gains Tax Relief and Other…