Daily Archives: March 5, 2016

Seymour v FCT – AAT’s original decision, that taxpayers’ evidence in Part IVC proceedings could be given by video link, overturned, first by the Federal Court and also on appeal

The Full Federal Court has, by majority (Pagone J dissenting), dismissed a husband and wife taxpayers’ appeal from the 7 April 2015 decision of Buchanan J (in FCT v Seymour [2015] FCA 320) that had set aside an order made by the AAT, which had granted leave to them to give their evidence, by video link, at the hearing of their…

ACNC will be retained by the Government (Earlier announcement reversed)

The Government announced on Friday 4.3.2016, that it will retain the Australian Charities and Not-for-profits Commission (ACNC). Minister for Social Services, Christian Porter, and Minister for Small Business and Assistant Treasurer, Kelly O’Dwyer, said the decision followed extensive consultation with the sector on the alternative option of repealing and replacing the ACNC. Mr Porter said it is…

Re Zhang and FCT – 216 deposits in the taxpayer’s bank account ultimately treated as director’s income

A taxpayer has been largely unsuccessful before the AAT in arguing that certain amounts, including deposits into his bank account, were not his income. The taxpayer was a director and the controlling mind of a group of companies. The Commissioner determined that the taxpayer had understated his income and issued amended assessments for the 2003…

Tax Laws Amendment (Norfolk Island CGT Exemption) Bill 2016 – now law

Tax Laws Amendment (Norfolk Island CGT Exemption) Bill 2016 – passed the Senate on 3 March 2016 and obtained Royal Assent on 18.3.16 as Act No 20 of 2016. It amends the Income Tax (Transitional Provisions) Act 1997 to exempt assets held by Norfolk Island residents before 24 October 2015 from CGT. This has to do with changing the grandfathering of…

Taxation and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 – ‘Netflix’ changes to GST etc. – update on passage to legislation

The Taxation and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 was passed by the House of Reps without amendment, on Thursday 3.3.2016. The Bill proposes amendments re GST treatment of digital products and other services and the GST treatment of cross-border transactions between businesses (in the process changing the definition of ‘present establishment’ in Australia).…

SMSF and collectables – I July 2016 deadline looming for storing them etc (SIS Reg 13.18AA)

A Self Managed Superannuation Fund (‘SMSF’), which has investments in collectables or personal-use assets that were acquired before 1 July 2011, has to meet the requirements of the Superannuation Industry (Supervision) Regulations 1994 (SISR) for these assets. Assets considered collectables and personal-use assets include things like artwork, jewellery, antiques, vehicles, boats and wine. Investments in such items must be made…

Higher Education Loan Program (HELP) – notice setting repayment income thresholds and repayment rates

A notice has been gazetted specifying the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2016-17 financial year. The details are: HELP repayment thresholds and rates 2016-17 For repayment income in the range Percentage rate to be applied to repayment income Below $54,870 Nil $54,870 to $61,120 4% $61,121 to $67,369…

Treaty residence of pension funds – OECD releases discussion draft on its model treaty

The OECD has released a discussion draft that includes proposals for changes to the OECD Model Tax Convention concerning the treaty residence of pension funds. Paragraph 12 of the final version of the Report on Action 6 of the BEPS Action Plan (Preventing the Granting of Treaty Benefits in Inappropriate Circumstances) indicates that: Additional work will also…

Indexed superannuation rates and thresholds for 2016-17 – calculated by adjustment under the recently released ‘AWOTE’ index numbers

The superannuation rates and caps that are indexed, for 2016/17, can be calculated by adjusting them by the recently released AWOTE (Average Weekly Ordinary Time Earnings) index figures. They are as follows. CONTRIBUTIONS CAPS: The general concessional contributions cap is $30,000 for 2016-17 (unchanged from 2015-16). Note the higher temporary concessional cap of $35,000 (not…

Crimes Legislation Amendment (Proceeds of Crime and Other Measures) Bill 2015 – receives Royal Assent – Offences created of dealing with accounting documents dishonestly

The Crimes Legislation Amendment (Proceeds of Crime and Other Measures) Bill 2015 , on Monday 29.2.2016, received Royal Assent as Act No 15 of 2016. It contains a range of measures to improve and clarify Commonwealth criminal justice arrangements, including amending the Criminal Code to insert 2 new offences of false dealing with accounting documents eg re…