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

– October 2017 Developments –

This is a collection of developments in Australian tax law and practice that occurred in October 2017
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

Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 – small turnover companies can now maintain the higher 30% tax and franking credit rate if 80% or more of their income is ‘passive income’ as defined in s23AB of the Rates Act

Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 – residential depreciation limits, no residential travel deductions; Foreign Acquisitions and Takeovers Bill – vacancy fees imposed on foreign owners leaving residential premises vacant for 6 months pa

Treasury Laws Amendment (Junior Minerals Exploration Incentive) Bill 2017 – refundable tax offsets or franking credits to shareholders of Junior Miners that surrendered some of the tax losses

Announcements

BASE EROSION & PROFIT SHIFTING (BEPS)

BEPS Action 5 implementation sees governments rapidly dismantling harmful tax incentives worldwide: OECD

CASES AND APPEALS

High Court

Full Federal Court

Keris Pty Ltd (Trustee) v DCT – Security deposit notice for estimated ‘future’ GST held to be valid even though the subdivision had not gone ahead, the sales had not occurred and the margin scheme might affect the amount of GST

Federal Court

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Administrative Appeals Tribunal (AAT)

Other Courts & Tribunals

Appeals

COMMISSIONER’S PUBLICATIONS & NEWS

Decision Impact statements

Rulings

TR 2017/D7 – Lower 27.5% corporate tax rate: draft ruling on the ‘carrying on business’ requirement, which largely ignores the distinction between ‘passive investment’ and active business activities (2016-17 only – if sub-80% passive amendments pass) 

TR 2017/D8 – Tax treatment of long-term construction contracts – Accruals basis or estimated profits basis (AASB 15) – IT 2450 and related determinations replaced

Determinations

TD 2017/21 and TD 2017/22 – Foreign equity distributions to corporate partners and corporate beneficiaries for the purposes of establishing a 10% ‘participation interest’ under Subdiv 768-A

Law Companion Guides

Class Rulings & Product Rulings

ATO Interpretative Decisions

Practice Statements

Practical Compliance Guides

Tax Alerts

Other ATO news or statements

GST DEVELOPMENTS

Legislation & Announcements (GST)

Treasury Laws Amendment (2017 Measures No 6) Bill 2017 – digital currency will be treated the same as foreign currency for GST purposes from 1 July 2017

GST: meaning of ‘incidental valuable metal goods’ – Minister determines when dealers can still be entitled to an Input Tax Credits for acquisitions from unregistered persons under the revised Div 66

Cases (GST)

Rulings, Etc. (GST)

SUPERANNUATION DEVELOPMENTS

Legislation, Announcements etc. (Super)

Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Bill 2017 – ‘first home buyer’ and ‘downsizer’ superannuation concessions

Cases (Super)

Rulings & Other things (Super)

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


[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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