Daily Archives: April 2, 2016

Qld payroll tax: Can Barz Pty Ltd & Anor v Comr of State Revenue & Ors – garnishee notices to purchasers of trust property invalid

In a decision handed down on Mon 21.3.2016, the Qld Supreme Court held that garnishee notices issued to the purchasers of a property held on trust were invalid. The taxpayers, a custodian company and 2 individual trustees of a self-managed superannuation fund (SMSF), had a payroll tax liability under the grouping provisions of the Payroll Tax Act…

Re Miley and FCT – Small Bus CGT relief: AAT decided that taxpayer passed the $6m test by applying a discount to actual proceeds on the basis that it was a non-controlling interest (despite control passing by others joining to sell all the shares)

The Commissioner has appealed to the Federal Court against the decision in Re Miley and FCT [2016] AATA 73. In that case, the AAT ruled that the “market value” of a parcel of shares that a taxpayer sold in a private company in an arm’s length transaction (together with the other 2 shareholders’ shares in the company) was…

Tax Laws Amendment (Implementation of the Common Reporting Standard) Bill 2016 – received Royal Assent as Act No 23 of 2016 – inserting new Subdiv 396-C (after the FATCA provisions)

Tax Laws Amendment (Implementation of the Common Reporting Standard) Bill 2016 – received Royal Assent as Act No 23 of 2016. The Bill amends Sch 1 to the Taxation Administration Act 1953 to insert a new Subdiv 396-C to require certain financial institutions in Australia (known as Reporting Financial Institutions) to report information to the Commissioner about financial accounts…

Superannuation Legislation Amendment (Choice of Fund) Bill 2016 – freedom to chose superannuation fund extended to employees under enterprise agreements / workplace determinations made after 1 July 2016

The Superannuation Legislation Amendment (Choice of Fund) Bill 2016, introduced in the House of Reps on Thur 17.3.2016, proposes to extend superannuation choice of fund to employees covered by enterprise agreements and workplace determinations made from 1 July 2016. Currently, employers who make contributions in accordance with an enterprise agreement or workplace determination are deemed to comply with…

Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016 – introducing a ‘remedial power’ for the Commissioner to exercise by legislative instrument

The Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016 was introduced in the House of Reps on Thur 17.3.2016. It proposes the following amendments: Commissioner’s remedial power – proposes to establish a remedial power to allow for a more timely resolution of certain unforeseen or unintended outcomes in the taxation and superannuation laws. The power allows…

External scrutiny of ATO: Tax Inspector-General submission to Parliamentary Committee

The Inspector-General of Taxation has made a submission to the House of Representatives Standing Committee on Tax and Revenue’s inquiry into the external scrutiny of the ATO. While supporting the removal of duplication and inefficiencies, the Inspector-General said any major policy change to reduce external scrutineer functions needs to be informed by a comprehensive analysis that weighs…

Re The Trustees of the WT & A Norman Superannuation Fund and FCT – AAT finds that s177EA operated to cancel the ‘imputation benefits’ from an SMSF’s ‘dividend washing’ transactions

The ATO on Thur 17.3.2016, issued Decision Impact Statements on the following: Re The Trustees of the WT & A Norman Superannuation Fund and FCT [2015] AATA 914 – In this case, the AAT confirmed that the imputation scheme benefit provisions in s 177EA of the ITAA 1936 applied to an arrangement whereby 2 related trusts disposed…

Orica Ltd v FCT – Federal Court found that interest deductions for an international ’round-robin’ were denied by Part IVA

The ATO on Thur 17.3.2016,  issued Decision Impact Statements on the following: Orica Ltd v FCT [2015] FCA 1399 – In this case, the Federal Court held Pt IVA applied to a scheme whereby deductions of $112m were claimed for interest on inter-corporate loans made by an Australian subsidiary of a US corporate group. In doing so,…