T a x  T e c h n i c a l  –  M o n t h l y  N e w s

– December 2016 Developments –

This is a collection of developments in Australian tax law and practice that occurred in November 2016
which aims to be relevant to tax practitioners.[i]

Compiled By

F John Morgan
A member of the Victorian Bar (www.FJMtax.com)

Table of Contents

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ACTS, BILLS AND ANNOUNCEMENTS

Acts, Bills & Draft Legislation

Diverted Profits Tax draft – $1b global, $25m local turnover taxpayers; 40% tax (30% franking) on profits diverted to sub-24% zone, if insufficient economic substance; pay 21 days; 12 month review; appeal limited to disclosed documents

Treasury Laws Amendment (2016 Measures No. 1) Bill 2016 introduced – amend Corporations Act so ‘start up’ employee share scheme ‘prospectus’ doesn’t have to be made public and amend ITAA97 for 6 new DGR’s

Announcements

BASE EROSION & PROFIT SHIFTING (BEPS)

CASES AND APPEALS

High Court

Full Federal Court

Doutch v FCT – CGT: small business CGT concession for $11m capital gain depended on an associated drilling company having less than $2m turnover, which turned on whether $55k in ‘fuel disbursement receipts’ were included

Estate of Erwin Binetter v FCT – assessments issued out of time for “fraud or evasion” held valid on the basis that the taxpayer had an onus (to show that the assessment was excessive) extends to this threshold issue

Federal Court

FCT v Rawson Finances Pty Ltd (No 4) – order made to send “letter of request” to Israeli judicial authorities to examine persons with knowledge of the alleged ‘back to back’ loans of the Binetter family companies

Administrative Appeals Tribunal (AAT)

Re GSLL & Ors and FCT – 75% administrative penalties affirmed for failing to lodge FBT returns – failing to remit did not produce an unjust result

Re WTPG and FCT – taxpayer denied a deduction for the cost his wife’s ‘travel expenses’, to enable her to care for the debilitating effects of his disabilities and thus enable him to travel to the UK for his employer: s8-1 & s26-30

Re Micallef and FCT – assessments amended treating unexplained amounts treated as ‘assessable’ – defence that they were parial repayments of a loan to a ‘con-man’ failed due to inconsistencies of evidence and taxpayers’ onus

Other Courts & Tribunals

Appeals

COMMISSIONER’S PUBLICATIONS & NEWS

Decision Impact statements

Rulings

Determinations

TD 2016/D6-D7 – The Commissioner’s view is that both a partnership with a corporate partner and a trust with a corporate beneficiary (including a discretionary trust) can have a ‘participation interest’ for exemption on distributions

Law Companion Guides

Class Rulings & Product Rulings

CR 2016/91-92 : Fleetsu FBT Vehicle Log Book System; St Peter’s College (Adelaide) deferred salary scheme

ATO Interpretative Decisions

Practice Statements

Practical Compliance Guides

Tax Alerts

Other ATO news or statements

Foreign resident capital gains withholding – ATO advises of ‘clearance certificates’ online and provides links to relevant forms – with a background on the detailed operation of the whole regime

GST DEVELOPMENTS

Legislation & Announcements (GST)

Cases (GST)

Rulings, Etc. (GST)

TDP 2016/1 – ‘electronic distribution platforms’ (EDP’s)– ATO issues a discussion paper on treatment in new GST legislation (digital supplies to Australian consumers and sub-$1k imports of goods)

SUPERANNUATION DEVELOPMENTS

Legislation, Announcements etc. (Super)

Cases (Super)

Rulings & Other things (Super)

LCG 2016/D10 – Superannuation reform: ‘non-commutable’ defined benefit income streams become taxable over $100k (1/16th of ‘transfer benefit account cap’) because the excess benefit could not be commuted

AUSTRALIAN CHARITIES & NOT-FOR-PROFITS (ACNC) SECTOR

BOARD OF TAXATION

EXTERNAL SUPERVISORS – IGT, JCPAA & ANAO etc.

TAX PRACTITIONERS BOARD & LEGISLATION

STATE TAXES

Legislation & Announcements (State)

Cases (State)

Rulings & Other (State)

OTHER DEVELOPMENTS

OECD tax statistics – various taxes as a percentage of GDP and of other taxes, together with their growth or contraction


 

[i]           Sources – abbreviations: ‘ATOlpr’: ATO Legal Professions Relationships emails; ‘IT’: Inteliconnect Tracker (CCH); ‘LCA’: Law Council of Australia; ‘LTN’: Latest Tax News (Thomson Reuters); ‘Sievers’: Chris Sievers’ GST post (www. http://chrissievers.com); ‘TBA’: Tax Bar Association Newsletter; TX: Tax Week (Thomson Reuters); ‘Vine’: The Tax Institute’s Tax Vine.

 




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