FCT v Bosanac – Summary judgment for $15m; claim of “conscious maladministration” fails; tax still relevantly ‘contestable’ even if bankrupted 

Tax Month - May 2016

The Commissioner has been successful in his application for summary judgment against husband wife taxpayers for amounts of $15m for assessments issued to the taxpayers for the 2006 to 2013 income years. The taxpayers sought to oppose the Commissioner’s application on the basis that the assessment process was “infected” by “conscious maladministration” on the part…

Tax Laws Amendment (Tougher Penalties for Country-by-Country Reporting) Bill 2016 [No 2] – Private members Bill to increase C-b-C reporting penalties up to 1500 units ($270k at present)

Tax Month - May 2016

On Monday 2.5.16 (on the eve of the Federal Budget, the Shadow Assistant Treasurer: Mr Andrew Leigh, introduced the Tax Laws Amendment (Tougher Penalties for Country-by-Country Reporting) Bill 2016 [No 2] into the House of Representatives, as a private members bill. An overview of this bill (extract from the Explanatory Memorandum) In 2015 Parliament passed the Tax…

Re TBCL & Anor and FCT – Super death benefit: ‘interdependency relationship’ not found on ruling facts but further ruling request ordered to cover further facts

Tax Month - April 2016

The AAT has ordered the Commissioner to request a couple (the taxpayers) to make an application for another private ruling in relation to a life insurance payout received following the death of their son. In 2013, the taxpayers’ son died in a motorbike accident. He was employed as a pilot and up to the time…

Board of Taxation launches “Sounding board” platform seeking ideas on tax regulation

Tax Month - April 2016

The Chair of the Board of Taxation, Michael Andrew, on Fri 29.4.2016 launched Sounding Board: Ideas for better tax regulation which is an online platform which allows users to submit, discuss and vote on tax system improvement ideas. “Stakeholders with day-to-day experience in navigating the system are encouraged to submit ideas on how to improve the tax system, and provide…

TA 2016/6 – Arrangement where individuals divert personal services income to an SMSF to access concessional tax rates – may offend PSI and NALI provisions

Tax Month - April 2016

On 29.4.16, the Tax Office  issued Taxpayer Alert TA 2016/6 warning individuals about arrangements purporting to divert personal services income (PSI) to a self-managed superannuation fund (SMSF) to avoid paying tax at personal marginal rates. The ATO said it is reviewing arrangements whereby individuals perform services for a client but do not directly receive any (or adequate)…

Vic: State Taxation and Other Acts Amendment Bill – introduced into the Victorian Lower House

Tax Month - April 2016

The State Taxation and Other Acts Amendment Bill 2016 (Vic) was introduced in the Victorian Legislative Assembly on Wed 27.4.2016 following the Victorian Budget. It proposes to amend the following Victorian Acts: the Payroll Tax Act 2007; the Duties Act 2000, the Land Tax Act 2005, the State Taxation Acts Further Amendment Act 2015, the Taxation Administration Act 1997, the Fire Services Property Levy…

Victorian Budget 2016-17: payroll tax cut; stamp duty increase on foreign property buyers; etc

Tax Month - April 2016

The Victorian Budget 2016-17 was handed down on Wed 27.4.2016. Key proposed revenue measures are as follows: Payroll tax tax-free threshold will be increased over 4 years, commencing 1 July 2016. The increase will be phased in as follows: 2016-17 – increase to $575,000; 2017-18 – increase to $600,000; 2018-19 – increase to $625,000; and 2019-20 – increase to $650,000. Payroll…

Vic landholder duty: BPG Caulfield Village Pty Ltd v Comr of State Revenue – no “economic entitlement” acquired – developer only acquired an right to participate in the development of some of the Club’s land

Tax Month - April 2016

A taxpayer has been successful before the Victorian Supreme Court in a matter concerning whether it had acquired an “economic entitlement”, such as to invoke the Victorian landholder duty provisions. In August 2012, the taxpayer entered into a Development Agreement (DA) with Melbourne Racing Club (MRC) in relation to the development and sale of certain land to…