M o r g a n’ s T a x M o n t h
– February 2013 Developments –
This is a collection of developments in Australian tax law and practice that occurred in February 2013 and which aims at being of relevance to tax lawyers.*
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
*Part IVA and transfer pricing amendment Bill introduced [3]
Consolidating dependency tax offsets – draft legislation released [5]
Venture capital: Government agrees to Board of Taxation’s recommendations [6]
Announcements
*Government confirms no flood levy to rebuild after recent Queensland floods [8]
*Monthly tax instalments by large companies: consultation paper released [9]
CASES AND APPEALS
High Court
Full Federal Court
Federal Court
Donoghue v FCT – Injunction granted to prevent Commissioner using certain documents [13]
Federal Circuit Court
Administrative Appeals Tribunal (AAT)
Re Herbert and FCT – No extension of time for objections lodged 22 years and 12 years late! [15]
*Re Purvis & Ors and FCT – Payments for “loss of pilots’ licence” assessable as ETPs [16]
*Date of disposal of CGT asset critical to accessing CGT small business concessions [17]
*Re Batchelor and FCT – Repaid deposit an assessable recoupment [18]
Re Flood and FCT – Extension of time to lodge an objection refused [19]
Other Courts & Tribunals
Cigarette smugglers fined almost $8m [20]
Appeals
COMMISSIONER’S PUBLICATIONS
Decision Impact statements
Rental deductions allowed: ATO view on Bocaz case (it was decided on its facts …) [26]
Pt IVA and foreign tax credits: ATO view on Citigroup case [27]
Rulings
TR 2012/2 – draft changes regarding effective lives of depreciating assets [29]
*TR 2013/2 – Gifts to school or college building funds [30]
TR 2013/3 – R&D tax offsets: feedstock adjustments [31]
Determinations
TD 2013/3 – Value of goods taken from stock for private use: 2012-13 [32]
TD 2013/4 – FBT: Reasonable 2013-14 food and drink amounts for LAFHA recipients [33]
Class Rulings & Product Rulings
CR 2013/11 – Conversion of shares leads to CGT event H2, but no capital gain [34]
CR 2013/12-14 – Capital proceeds; GST and developer contributions; GST and dentists [35]
CR 2013/15-16 – Equity incentive plan; disability funding program SA [36]
ATO Interpretive Decisions (ATOIDs)
Practice Statements
*PS LA 2011/5 amended – Recovery of administrative overpayments [37]
Tax Alerts
Other Commissioner news
AUSTRAC information to the ATO: guidelines released for disseminating bulk information [38]
*Electronic Funds Transfer for refunds from 1 July 2013 for individuals [39]
*Real-time compliance approach for higher consequence taxpayers [40]
ATO data on tax and superannuation litigation trends [41]
Claiming R&D expenditure incurred to an associate but not paid [42]
GST DEVELOPMENTS
Legislation & Announcements (GST)
Cases (GST)
*MBI Properties Pty Ltd v FCT – GST: increasing adjustment for acquisition of going concern [46]
*Duoedge Pty Ltd v Leong & OCMC Pty Ltd – Rectification of contract re GST refund denied [48]
Rulings & Other things (GST)
*GSTR 2013/D1 – GST and adjustment notes [51]
SUPERANNUATION DEVELOPMENTS
Legislation (Super)
Cases (Super)
Re Dowling and FCT – Excess super contributions tax case: taxpayer has partial win [55]
*SMSF trustee gets 14 days jail for breach of rules, says Tax Office [57]
Rulings & Announcements etc. (Super)
Report encourages tax and super changes to reward unpaid caring [58]
Intra-fund advice to remain exempt from FoFA adviser charging regime [59]
Coalition calls on Government to put any super tax changes to the people [60]
*PM says no tax on super withdrawals for over-60s [61]
Minister confirms that MPs earning over $300,000 will pay more tax on super [63]
Foreign pension funds to get access to MIT withholding tax regime: law to be amended [65]
Stronger Super – MySuper and insurance: Govt to make changes to draft regs [66]
SMSF investment strategies: study highlights role for advisers [67]
Tax Office superannuation portability request scheme: SIS Regs amended [68]
Total super assets reached $1.51 trillion at December 2012 [71]
*Changes to SGC rate and My Super – Survey shows many employers don’t have a plan yet [72]
CARBON TAX
MINERALS & PETROLEUM RENT RESOURCE RENT TAX
Senate agrees to motions requiring release of information about mining tax collections [73]
*Mining tax generates $126m in its first 2 quarters [74]
*MRRT Amendment Bill introduced by Greens [75]
MRRT legislative determination: nil rate and exemption from lodging [76]
Senate committee to review development and operation of mining tax [77]
AUSTRALIAN CHARITIES & NOT-FOR-PROFITS COMMISSION (ACNC)
ACNC Advisory Board appointments [78]
Charities registered by ASIC – help from the ACNC [79]
BOARD OF TAXATION
EXTERNAL SUPERVISORS – IGoT; OMBUDSMAN, JCPAA & ANAO.
IGT review of self-assessment system: report released [80]
TAX PRACTITIONERS BOARD & LEGISLATION
Tax agent services by financial planners: draft legislation and outline paper released [81]
Relevant experience for Tax Agents and prior learning for BAS agents [82]
STATE TAXES
Legislation (State)
Cases (State)
Rulings & Announcements etc. (State)
WA stamp duty: nominal duty relating to deceased estates – Commissioner’s Practice [85]
Vic stamp duty: revised duties forms – transitional period extended [86]
OTHER DEVELOPMENTS
Official RBA interest rates – no change at 3.0% [88]
US moves to combat tax avoidance through use of tax havens [89]
G20 vows to tackle profit shifting [90]
THE END
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NB: I have gathered these articles from various sources for the purposes of study and teaching and I have acknowledged the sources. None of this publication should reproduced in breach of copyright belonging to the acknowledged source. The headings to the articles are often mine (and shouldn’t necessarily be attributed to the publisher).
Source Abbreviations: ‘EDTN’ = Electronic Daily Tax News, published by CCH; ‘LTN’ = Latest Tax News published by Thomsons; and ‘Taxvine’ is the weekly publication by the Tax Institute of Australia; Greenfields = Greenfields Financial Services; TaxBar = Melbourne Tax Bar Association Newsletter at www.vicbar.com.au / Members / Bar Associations / Tax