M o r g a n’ s   T a x   M o n t h

– September 2014 Developments –

This is a collection of developments in Australian tax law and practice that occurred in September 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 5) Bill 2014 introduced – reduce various offsets and update DGRs [1]

*Mining tax repeal and abolition of small business tax breaks – start dates proclaimed [2]

*Tax and Superannuation Laws Amendment (2014 Measures No 4) Bill 2014 passed; awaits Assent – thin cap; foreign resident CGT; foreign dividends [3]

*New Australia-Swiss DTA – Bill passes all stages [4]

Omnibus Repeal (Autumn 2014) Bill 2014 awaits Royal Assent – repeals legislation across 10 portfolios, including Treasury [5]

*CGT exemption to trustees for compensation and insurance: Draft legislation released [6]

Medicare levy surcharge and rebate – income thresholds to be frozen – Bill introduced [7]

 

Announcements

Parliamentary committee recommends tax changes re Northern Australia [8]

Tax reform needed to maintain living standards: Treasury Secretary [9]

The future of tax: BCA paper released [10]

*OECD/G20 BEPS project – 1st set of deliverables released [11]

*G20 Finance Ministers agree to modernise global tax rules and close gaps [12]

*Complaints about tax disputes: Ombudsman appeared at Parliamentary inquiry [13]

 

 

CASES AND APPEALS

High Court

Full Federal Court

*Task Technology Pty Ltd v FCT – software licence use payments held to be royalties [14]

 

Federal Court

Federal Circuit Court

Administrative Appeals Tribunal (AAT)

*Re Coshott and FCT – Settlement payment for damages subject to CGT – and no cost base for legal costs (because there was no evidence) [15]

*Re GHP 104 160 689 Pty Ltd and FCT – R&D tax concession claims mostly allowed [16]

Re Moore and FCT – Over-claimed GST credits: penalty for “recklessness” affirmed [17]

*Re Riley and FCT – Compensation payment for domestic assistance assessable as ordinary income [18]

*Re Hicks & Associates Pty Ltd, Hicks and FCT – Assessments treating $800,000 in purported loans as income upheld [19]

*Re KNNW and FCT – Bulk of tax debt released on hardship grounds but application for release of the balance denied [20]

 

Other Courts & Tribunals

*Soong v Director of Public Prosecutions (Cth) – Conviction upheld for failure to provide security for tax liabilities [21]

*Windoval Pty Limited (Trustee) v Donnelly (Trustee in Bankruptcy) – Bankruptcy trustee claws back gift to family trust intended to defeat tax liability [22]

 

Appeals

*MBI Properties Pty Ltd v FCT – Transcript Released by High Court [23]

*Re Coshott and FCT – Taxpayer appeals decision that CGT applied to settlement proceeds to an action for breach of contract and negligence [24]

 

 

COMMISSIONER’S PUBLICATIONS & NEWS
Decision Impact statements

Chemical Trustee Limited v DCT Judgment to DCT for unpaid tax debt: ATO view on Chemical Trustee Ltd [25]

 

Rulings

Determinations

*TD 2014/D15 – PSI Entity’s receipts when not providing services is still PSI [26]

*TD 2014/D16 – a right for an employee to acquire an interest in shares subject to shareholder, is not an “indeterminate right” for ESS purposes [27]

 

Class Rulings & Product Rulings

Class Rulings, Product Ruling, Addendum to Product Ruling released [28]

 

 

ATO Interpretive Decisions (ATOIDs)

Tax Alerts

Other ATO news or statements

*Professional firm profits and assessing Pt IVA risk: ATO draft guidelines [29]

*ATO working with oversea regulators re global tax evasion: speech [30]

*Implications of OECD BEPS Actions Items from ATO perspective: speech [31]

*Australia’s laws are robust re aggressive international tax planning: Treasurer [33]

*GIC and SIC rates for Oct-Dec 2014 quarter [34]

*ATO launches voice authentication for telephone calls [35]

New task force, including ATO, to target outlaw motorcycle gangs [36]

 

 

GST DEVELOPMENTS
Legislation & Announcements (GST)

*GST on imported goods: no agreement on lowering id=”mce_marker”,000 threshold [37]

 

Cases (GST)

*Re The Trustee of Oenoviva (Australia & New Zealand) Plant and Equipment Trust and FCT – GST input tax credits: no standing to act on behalf of another entity [38]

 

Rulings, Determinations & Other things (GST)

*Re North Sydney Developments Pty Ltd v FCT – Sufficient notification of GST refund – ATO reaction [39]

*GSTR 2014/D4 – GST: meaning of “passed on” and “reimbursed” for the purposes of the new ‘anti-refund’ provision: s142-10 [40]

 

 

SUPERANNUATION DEVELOPMENTS
Legislation, Announcements etc. (Super)

*CGT exemption to trustees for compensation and insurance: Draft legislation released [41]

*Super fund mergers and the proportioning rule: Draft legislation released [42]

 

Cases (Super)

Rulings & Other things (Super)

*Super excess contributions tax: ATO view on Dowling case [43]

*ATO SMSF quarterly statistics for June 2014 released [44]

 

 

CARBON TAX & EMISSIONS REDUCTION FUND

 

MINERALS & PETROLEUM RENT RESOURCE RENT TAX

*Government tries again – new mining tax repeal Bill introduced [45]

*Mining tax repeal Bill – deal done with PUP in Senate and now awaits Assent [46]

Mining tax repeal and associated measures – start dates to be proclaimed: Government [47]

Mining tax repeal and abolition of small business tax breaks – start dates proclaimed [48]

Mining tax repeal – exemption from MRRT return lodgment: Legislative Instruments [49]

 

 

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

*ACNC to revoke registration of 400 charities that appear not to be operating [50]

 

 

BOARD OF TAXATION

 

EXTERNAL SUPERVISORS – IGoT; OMBUDSMAN, JCPAA & ANAO.

 

TAX PRACTITIONERS BOARD & LEGISLATION

Re Su and Tax Practitioners Board – prohibition period upheld [51]

Re Burnett and Tax Practitioners Board – Tax agent registration renewal denied [52]

*‘Sufficient number’ and ‘fee or other reward’ for tax (financial) advisers: TPB drafts Information Sheets released [53]

*‘Tax (financial) adviser’ registration options: TPB updates [54]

 

 

STATE TAXES
Legislation & Announcements (State)

NSW: State Revenue Legislation Amendment (Electronic Transactions) Bill introduced [55]

Qld payroll tax: twice yearly lodgment for small businesses [56]

SA: Budget Bill awaits Assent [57]

 

Cases (State)

NSW land tax: Loomes v Chief Comr of State Revenue – discretion to “write off” unpaid land tax refused [58]

NSW land tax: Woods v Chief Comr of State Revenue – Principal Place of Residence (‘PPR’) exemption revoked, but Comr told to reconsider delay [59]

NSW payroll tax: Lombard Farms Pty Ltd v Chief Comr of State Revenue – discretion to de-group refused – taxpayer loses appeal [60]

NSW payroll tax: Boston Sales and Marketing Pty Ltd v Chief Comr of State Revenue – de-grouping determination refused [61]

SA: Emergency Services Levy remissions – retirement villages [62]

Vic land tax: Marrone & Anor v Comr of State Revenue – primary production exemption allowed [63]

 

Rulings & Other (State)

Qld payroll tax: exempt allowances for motor vehicles and accommodation – updated Public Ruling to harmonise with other States [64]

Vic stamp duty: first home buyer duty concession [65]

Vic payroll tax: SRO disclosure opportunity or ‘employers’ who’ve treated the contractor provisions as applying holders of Private Security Individual Operator Licences [66]

OTHER DEVELOPMENTS

FoFA amendments regulation: disallowance motion postponed [67]

Financial advice and SoAs: regs made following PUP deal [68]

FoFA Amendment Bill: Senate committee recommends passage [69]

 

 

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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