Re Sandbach and FCT – taxpayer appeals decision that the taxpayer could not use “threatened” losses from proceedings that had ended over a decade ago to reduce his taxable income to nil

Tax Month 2016-02

The taxpayer has appealed to the Federal Court against the decision in Re Sandbach and FCT [2015] AATA 1024. In the case, the AAT affirmed default assessments (including penalties) issued by the Commissioner, finding that the taxpayer could not use “threatened” losses from proceedings that had ended over a decade ago to reduce his taxable income to nil.…

R&D tax incentive review as part of the ‘Innovation statement’ – issues paper released

Tax Month 2016-02

Background – The National Innovation and Science Agenda (the Agenda) was launched on 7 December 2015. The Agenda aims to create a more innovative and entrepreneurial Australia. In launching the Agenda the Australian Government committed to undertaking a review of the Research and Development (R&D) Tax Incentive programme. Objective – The Review is identifying opportunities…

Latest OECD BEPS transfer pricing recommendations – Treasury released a consultation paper on adopting these recommendations in Australia

Tax Month 2016-02

On Thursday 11/2/16, Treasury released a consultation paper on whether Australia should adopt the OECD’s latest transfer pricing recommendations (arrived at as part of its BEPS work). The Treasury release, of the consultation paper, stated the following. Transfer pricing rules are designed to make sure Australia receives an appropriate share of tax from multinational firms.…

Tax Laws Amendment (Norfolk Island CGT Exemption) Bill 2016 – CGT exemption now for all assets acquired before becoming part of Australia (except pre-24.10.15 mainland assets already taxable)

Tax Month 2016-02

On 11 February 2016, the Government introduced the Tax Laws Amendment (Norfolk Island CGT Exemption) Bill 2016 into the House of Representatives. [APH website] 1.1 This Bill amends the Income Tax (Transitional Provisions) Act 1997 to exempt assets held by Norfolk Island residents before 24 October 2015 from capital gains tax (CGT). 1.2 However, this change…