Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 – Corporate Tax rate reduction to 27.5% for SBE’s; increase SME turnover threshold to $10m; increase unincorp SBE offset to 8%

Tax Month - September 2016

The Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 was introduced in the House of Reps, on Thursday 1.9.2016. It contains the following proposed amendments. Corporate Tax Rate Reduction – 27.5% for SBE’s and 25% for all in 11 years The Bill proposes to amend the Income Tax Rates Act 1986 to reduce the corporate…

Treasury Laws Amendment (Income Tax Relief) Bill 2016 introduced to increase the 32.5% threshold from $80,000 to $87,000

Tax Month - September 2016

On 1 September 2016, the Treasurer introduced the Treasury Laws Amendment (Income Tax Relief) Bill 2016 to amend the rates act to increase the threshold for the 32.5% from $80,000 to $87,000. The result will be that individuals (voters) will now need taxable income over $87,000 to start paying tax at 37% rate (that is,…

‘Apple’ received 13b Euro in tax benefits from Ireland, which the EU has declared illegal and required Ireland to recover

Tax Month - August 2016

Brussels, 30 August 2016 The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other businesses. Ireland must now recover the illegal aid. Commissioner Margrethe Vestager, in charge of…

SMSF compliance action and focus areas: ATO speech at Tax Institute’s National Superannuation Conference in Melbourne

Tax Month - August 2016

The ATO has provided a report on compliance outcomes in 2015-16 and focus areas for 2016-17. Speaking at the Tax Institute’s National Superannuation Conference on 25 August 2016, Assistant Commissioner Kasey MacFarlane discussed the following topics: Compliance outcomes in 2015-16 reflect an increasing use of new compliance enforcement tools available to the ATO since 1 July 2014. During the course of 2015-16,…

Budget Savings (Omnibus) Bill – introduced: many savings including some tax related e.g. reducing R&D off-sets by 1.5 percentage points

Tax Month - August 2016

On 31.8.16, the Budget Savings (Omnibus) Bill 2016 was introduced in the House of Reps. It seeks to achieve savings across multiple portfolios to contribute to Budget repair. The Bill would implement measures announced in the 2016-17 Federal Budget and earlier Budget updates. Some of the changes include: Single touch payroll reporting – creates a new reporting framework,…

NSW stamp duty: Rulings – Commissioner insists that ‘market value’ must be GST inclusive; how the aggregation of dutiable transactions provision will be applied

Tax Month - August 2016

The NSW Office of State Revenue (OSR) has issued the following Revenue Rulings: Revenue Ruling DUT 045 (Market value and GST). It states that the Chief Commissioner will not accept a valuation as a market valuation if it is expressed to be determined on a GST-exclusive basis, or has been made on that basis, or the…

FCT v Croft & Anor – Guarantee for debts of taxpayer company binding, under s3A general power of administration, despite deficient delegation (later ratified) and FCT allegedly breaching express term not to recover company’s debt, by garnishee, which interfered with company’s ability to meet its instalments, triggering the guarantors’ liability

Tax Month - August 2016

The Supreme Court of Queensland has held that personal guarantees given by a husband and wife, in relation to an agreement they entered into, with the Commissioner, were binding on the guarantors. They guaranteed that their company would pay its tax debt, by way of instalments. The company defaulted and the guarantors were liable for…

Taxpayer appeals from Bywater Investments Ltd & Ors v FCT (previously Hua Wang Bank Berhad v FCT) on residency and trading stock – High Court transcripts of hearing released

Tax Month - August 2016

The High Court has released transcripts of its hearings of the taxpayers’ appeal, heard in Canberra, against the decision of the Full Federal Court in Bywater Investments Ltd & Ors v FCT [2015] FCAFC 176 was heard by the High Court on 24 August 2016 (HCATrans 183) and 25 August 2016 (HCATrans 184). The Full Federal Court had dismissed the taxpayers’…

Taxpayer appeal from FFC decision in Blank v FCT that $160m in profit participation agreement, on termination of his employment with Glencore was income – High Court transcript released

Tax Month - August 2016

The High Court has released the transcript from the hearing (in Canberra) from the Full Federal Court decision in Blank v FCT [2015] FCAFC 154. The appeal was heard by the High Court on 23 August 2016 (HCATrans 181) and 24 August 2016 (HCATrans 182). The Court reserved its decision. In a majority decision, the Full Federal Court had dismissed the taxpayer’s…