T a x T e c h n i c a l – M o n t h l y N e w s – March 2016 Developments – This is a collection of developments in Australian tax law and practice that occurred in March 2016 which aims to be relevant to tax practitioners.[i] Compiled By F John…
The AAT has found that an employer did not make superannuation contributions when he made direct payments to an employee. The employee was his former de factor partner and, after the relationship ended in 2008, she complained to the ATO about the employer’s superannuation guarantee (SG) obligations. After an initial audit, the ATO advised the…
The AAT has found that interest paid by a married couple on 3 loan accounts was not deductible as they failed to establish that the interest was incurred in deriving their assessable income or in carrying on a business. The taxpayers, Mr and Mrs J, sought to claim these deductions for the 2010 and 2011 income…
The ATO, on Friday 26.2.2016, released interpretation NOW! – Episode 9. The documents (or “Episodes” as they are called) are an ATO Tax Counsel Network (TCN) initiative and aim to raise awareness about what courts are saying about statutory interpretation. Topics and cases mentioned in this Episode include: legislative scheme – R v Host [2015] WASCA 23; judgment…
I [the Chairman] am pleased to announce the appointment of Karen Payne as the inaugural Chief Executive Officer of the Board of Taxation effective from 31 March 2016. Ms Payne is a highly respected tax practitioner having recently been a senior partner of Minter Ellison and specialising in the Financial Services Industry. Ms Payne will…
Speaking at the Committee for Economic Development of Australia (CEDA), on Friday 26.2.2016, the Assistant Treasurer discussed 2 areas in which the Government expects legislation to be introduced in the “coming weeks”: Choice of fund – The Assistant Treasurer said currently an estimated 2m employees do not have the opportunity to choose their own fund. A common way…
The ATO has advised that it has updated its Building confidence publication to outline its continued focus this year on corporate tax avoidance. Before a Senate Estimates committee on 10 February 2016, the Commissioner conveyed to multinationals and large businesses that the ATO will “take firm action against those who deliberately seek to avoid their tax obligations”. The ATO said…
In another excess contributions tax case, the AAT has ruled that there were no “special circumstances” under s 292-465 of the ITAA 1997 to disregard or re-allocate a taxpayer’s excess non-concessional contributions for a year. The taxpayer, a retired teaching professor, had made personal non-concessional contributions of $175,600 to his superannuation funds in the 2010 financial…
The AAT has agreed to stay a decision of the Tax Practitioners Board to cancel a company’s registration as a tax agent for alleged failure to comply with the Code of Professional Conduct. The termination was prompted by complaints made by a director of 2 corporate taxpayers, who claimed that the applicant used the Tax…
Tax Commissioner Chris Jordan appeared on Wed 24.2.2016, at Parliament House in Canberra, before a hearing of the House Tax and Revenue Committee inquiry into the ATO’s annual report. At the same meeting the Committee heard from the Inspector-General of Taxation. The Chair of the Committee wanted the Commissioner to address the following concerns raised by tax…