M o r g a n’ s   T a x   M o n t h

– July 2014 Developments –

This is a collection of developments in Australian tax law and practice that occurred in July 2014 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

*Tax and Superannuation Laws Amendment (2014 Measures No 4) Bill 2014 – Thin Cap; Foreign Dividends (s23AJ); Foreign Residents and Capital Gains [1]

*Repeal of 1 July 2015 tax cuts and other measures – Bill introduced [2]

*MIT withholding tax regime for foreign pension funds: draft legislation released for comment [3]

 

Announcements

*Exploration development incentive for greenfield sites: proposing tax losses converted to shareholder credits at corporate rate [4]

*Australia’s tax treaty negotiation program: Treasury seeks comments [5]

*OECD approves the 2014 update to the OECD Model Tax Convention [6]

*OECD automatic exchange of information – global standard released [7]

AFP-hosted fraud and anti-corruption centre established – announced my the Minister for Justice (The Honorable Michael Keenan MP) [8]

 

 

CASES AND APPEALS

High Court

Full Federal Court

*IOOF Holdings Limited v FCT – taxpayer had no right to have consolidation rules applied as they existed before the amendments [9]

 

Federal Court

*FCT v Growth Investment Fund SA & Ors – Commissioner obtains freezing order for over id=”mce_marker”4.27m of assets and substituted service in Switzerland [10]

*Halls v FCT – ATO interim audit report was not a ‘decision’ amendable to review under the ADJR Act and lacked sufficient prospects of success for the Judiciary Act [11]

*Shears v DCT – Extension of time to apply for judicial review refused as ADJR Act did not apply to the decisions the subject of the complaint [12]

 

Federal Circuit Court

Administrative Appeals Tribunal (AAT)

*Re Ford and FCT – Car expenses for transporting equipment to work not deductible because there was a sufficient locker at work [13]

*Re Yazbek and FCT – Transfer of shares to partnership ineffective – taxpayers assessable on dividends [14]

*Re Nassar and FCT – Taxpayer fails to prove that income tax and GST assessments excessive [15]

*Re Murphy and FCT – Transfer of shares into joint names triggers CGT [16]

*Re Cameron and FCT – PAYG credit claims disallowed [17]

 

Other Courts & Tribunals

*DCT v Meakes – Tax repayment instalment order set aside [18]

 

Appeals

*Re Moignard and FCT – Commissioner appeals against AAT decision that taxpayer was not presently entitled to vineyard proceeds [19]

*FCT v Hunger Project Australia [2014] FCAFC 69 – Commissioner will not seek special leave to appeal to the High Court [20]

Re Yazbek v FCT – taxpayers appeal AAT decision that dividends were not derived by the limited partnership they set up [21]

 

COMMISSIONER’S PUBLICATIONS & NEWS

Decision Impact statements

*CGT scrip-for-scrip rollover – ATO view on Fabig case [22]

Altnot; Pham – ATO Decision Impact Statements [23]

*Kelly v FCT – Assignment of partnership interest effective but no deduction for super contribution for non-executive director [24]

 

Rulings

*TR 2014/5 – Matrimonial property or money transferred out of private companies [25]

 

Determinations

TD 2014/18 – Thin cap rules and special purpose securitisation entities [26]

TD 2014/19 – Reasonable travel and meal allowance amounts for 2014-15 [27]

*TD 2014/20 – Div 7A benchmark interest rate for 2014-15 is 5.95% (down from 6.20%) [28]

 

Class Rulings & Product Rulings

CR 2014/54-56 – Incentive plan; Government bonds; FBT and employee purchase program [29]

CR 2014/57-60 – Return of capital; early retirement; cancellation of units; FBT log book [30]

PR 2014/13-15 Insurance cover; deductibility of investment [31]

PR 2014/16 – Tax consequences of a novated vehicle lease [32]

 

ATO Interpretive Decisions (ATOIDs)

TOFA and term deposit provided as security: ATO ID [33]

 

Practice Statements

PS LA 2011/27 on when ATO view of the law will only be applied prospectively modified after Macquarie Bank case [34]

 

Tax Alerts

*TA 2014/1 – ATO auditing special purpose trusts used by property developers to argue proceeds are not revenue but capital gains with 50% discount [35] 19

 

Other ATO news or statements

Tax agent lodgment program 2014-15: details released [36]

Wrong tax system for the digital age? Treasury executive asks [37]

*CPI: June quarter 2014 is 0.5% and 3.0% for the year to 30 June 2014 [38]

 

 

GST DEVELOPMENTS

Legislation & Announcements (GST)

Part-time tertiary courses to be tertiary courses to be GST-free retrospectively from 2009 – determination registered July 2014 [39]

 

Cases (GST)

Rulings, Determinations & Other things (GST)

*GSTR 2014/D2 – GST treatment of credit/debit card fees and charges [40]

*GSTD 2014/3 – GST adjustment event: rental yield guarantee top-up payments [41]

 

 

SUPERANNUATION DEVELOPMENTS

Legislation, Announcements etc. (Super)

Cases (Super)

Re Dowling and FCT – Super excess non-concessional contributions tax affirmed; no special circumstances [42]

 

Rulings & Other things (Super)

SMSF auditor registration fees increased by $3 from 1 July 2014 to id=”mce_marker”03 and the SMSF Annual Statement goes up id=”mce_marker” to $51 [43]

ATO flags SMSF concerns for review this year [44]

ASIC concerned about property investment advice to SMSFs [45]

Retirement income products and regulation: Govt discussion paper released [46]

 

 

CARBON TAX & EMISSIONS REDUCTION FUND

Emissions Reduction Fund: Senate committee recommends Bill be passed [47]

Senate committee recommends carbon tax repeal Bills be passed, but tax cuts repeal Bill defeated [48]

*Carbon tax repeal Bills defeated in the Senate, but Govt will re-introduce next week [49]

*Carbon tax repeal Bills – finally repealed [50]

 

 

MINERALS & PETROLEUM RENT RESOURCE RENT TAX

Mining tax abolition: debate in the Senate [51]

Government will not remove tax cuts associated with mining tax repeal [52]

 

 

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

*ACNC replacement – options paper released [53]

 

 

BOARD OF TAXATION

*Review of TOFA regime – Survey of Compliance Costs to be completed by 18 July 2014 [54]

 

 

EXTERNAL SUPERVISORS – IGoT; OMBUDSMAN, JCPAA & ANAO

*Tax penalty regime can be improved: IGT report released [55]

 

 

TAX PRACTITIONERS BOARD & LEGISLATION

*Tax (financial) advisers: Tax Board policy documents finalised [56]

Tax (financial) advisers: registration requirements – regs finalized [57]

New regulation of financial advisers providing tax advice: ASIC [58]

*When ‘payroll service providers’ need to register as a ‘tax agent’ or ‘BAS agent’: TPB draft information sheet released [59]

Re Harris and FCT – Tax agent found to be fit and proper person [60]

Tax Practitioners Board v Su – Pecuniary penalty of $70,000 imposed on tax agent [61]

Re Pathiranage and Tax Practitioners Board – Tax agent registration renewal refused; education requirements incomplete [62]

 

 

STATE TAXES
Legislation & Announcements (State)

ACT: payroll tax threshold; insurance duty; land tax rates – Instruments made [63]

NT: Budget Bill receives Assent – targeting the FHOG to new homes [64]

WA: Revenue Laws Amendment Bill receives Assent [65]

 

Cases (State)

NSW land tax: Laviva Nominees Pty Ltd v Chief Comr of State Revenue – interest imposed on special trust for tax defaults affirmed [66]

NSW land tax: Edgely Pty Limited v Chief Comr of State Revenue – grouping of companies affirmed [67]

NSW payroll tax: Health Service Pty Ltd v Chief Comr of State Revenue – employment agency provisions applied despite employer/employee relationship [68]

NSW payroll tax: Conrad Linings Pty Limited v Chief Comr of State Revenue – grouping decision affirmed [69]

Vic stamp duty: White Rock Properties Pty Ltd v Comr of State Revenue – transfer of land to “agent” dutiable [70]

 

Rulings & Other (State)

ACT Revenue Office website updates [71]

Qld: unpaid tax interest – Public Ruling updated [72]

Qld: objection and review rights; unexecuted instruments: Public Rulings updated [73]

SA: interest rates on tax defaults; land tax; etc – Information Circulars released [74]

SA payroll tax: RevenueSA guides on rates and thresholds [75]

 

 

OTHER DEVELOPMENTS

Need to reform the tax system cannot be overstated: Treasury Secretary [76]

FoFA amending regs tabled in the Senate [77]

FoFA regs to stand – Senate disallowance motion defeated; Govt to make further regs following PUP deal [78]

Former High Court Judge: Ian Callinan to head CBA review [79]

 

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

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