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

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COMPILING NOW

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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 losses relevantly ‘incurred’ and she was not ‘presently entitled’ to trust distributions because the interrelated alternate distribution was either valid or not severable

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.

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