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

– September 2017 Developments –

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

______________________________________________________________________________

 

You are free to use this material, provided you include a link back to the article on this site.

ACTS, BILLS AND ANNOUNCEMENTS

Acts, Bills & Draft Legislation

Taxation Administration Regulations 2017 – promulgated to replace the 1976 regulations due to ‘sunset’ – refomated but no substantive change intended

Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 – exposure draft of Bill to exclude, from the 27.5% rate, small companies that carry on a business but have at least 80% ‘base rate passive income’ (so that 30% franking credits received can be fully passed on)

Announcements

‘Combatting Illegal Phoenixing’ – Treasury issues this Consultation Paper on implementing recommendations by its ‘phoenix’ and ‘black economy’ task forces

Trump’s “Unified Framework for Fixing our Broken Tax Code” – the first emanation of the President’s dramatic pro-business and jobs tax reform campaign proposals

BASE EROSION & PROFIT SHIFTING (BEPS)

BHP’s Annual Report discloses $1.1b in tax disputes with the ATO – under the transfer pricing; MRRT & CFC provisions

CASES AND APPEALS

High Court

Cable & Wireless & Pacific Holding BV (in liquidation) v FCT – High Court refused the taxpayer leave to appeal the FFC decision that denied it a refund of $452m dividend withholding tax on its share of the $3.9b Optus share buy back – the amount was not paid from an untainted share capital account

Full Federal Court

Lewski v FCT – Beneficiary not liable to tax as trust loss deductions were relevantly ‘incurred’ and also she was not ‘presently entitled’ to any trust income – because the alternate resolution made her entitlement contingent or it could not be severed from the main resolution (and infected both with invalidity)

CofT v Tamarama Fresh Juices Australia Pty Ltd & Ors – the Commissioner set aside a subpoena to disclose information generated in funding the Binetter company liquidators’ action against their directors – this time in the second action he funded to recover proceeds from the sale of the ‘Nudie’ juice business

Federal Court

Chhua v FCT – ‘fraud or evasion’ assessments protected from s39B judicial review by s175 – power to raise assessment is not separate from the process protected by s175 and is not relevantly ‘jurisdictional error’

Administrative Appeals Tribunal (AAT)

HHWT and FCT – Amended GST and income tax assessments upheld where partnership ceased to carry on an enterprise and other irregularities mar the landscape

Other Courts & Tribunals

Appeals

COMMISSIONER’S PUBLICATIONS & NEWS

Decision Impact statements

Rulings

Determinations

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)

Simplified GST Accounting Methods Legislative Instrument (No. 1) 2007 – determination continuing to allow small food retailers to estimate the amount of GST payable on mixed sales of taxable and non-taxable products

Cases (GST)

Re Icehot Pty Ltd and FCT – taxpayer fails to get windfall refund of GST paid by a mortgagee bank and credited to mortgagor taxpayer – the ATO raised a debit to correct mistake then allowed the taxpayer’s objection, which the AAT held it could not review

Rulings, Etc. (GST)

TDP 2017/2 – FBT and definition of “taxi” following the recent Federal Court decision including Ubers as ‘taxis’ for GST purposes – ATO releases Discussion Paper with 4 ‘consultation questions’

SUPERANNUATION DEVELOPMENTS

Legislation, Announcements etc. (Super)

Transfer Balance Account reporting (for the $1.6m cap) – Commissioner registers the final version of this determination as to how providers are to report to the ATO

PAYG Withholding Variation for super beneficiaries who don’t quote their TFN (Final: F2017L01280) – rate on non-taxable component (NANE income) is varied to nil% – Commissioner registered instrument replacing 10 year old sunset predecessor

Cases (Super)

Rulings & Other things (Super)

Super ‘Transfer Balance Account’ ($1.6m cap) – Commissioner announces format of ‘report’ and instructions about when and how to use it

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.

About the author