Superannuation reform (2nd tranche) – exposure drafts: $1.6m retirement phase cap; $25k contribution caps; 30% contribution tax starts at $250k; 5 year contribution carry forward for sub-$500k balances

Tax Month - September 2016

On 27.9.16, the Government released 2 Draft Bills and a draft regulation and explanatory material comprising the 2nd tranche of superannuation reforms that were first announced in the 2016-17 Budget: Exposure Draft: Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 Exposure Draft: Superannuation (Excess Transfer Balance Tax) Imposition Bill 2016 Exposure Draft: Treasury Laws…

Benjamin v FCT – Court confirms AAT’s decision to refuse extension of time to challenge objection decisions – 7 years out of time: ‘rested on his rights’

Tax Month - September 2016

On 23.9.2016, the Federal Court dismissed a taxpayer’s appeal from the decision in Re Benjamin v FCT [2015] AATA 923 in which the AAT refused to allow an extension of time for the taxpayer to lodge an application for review of the Commissioner’s decision to disallow his objection to assessments for the income years ended 30 June 2000 to 2005 (which involved a liability…

Bahamas leaks – ICIJ release 1.3m leaked documents from their corporate registry adding further insight into the leaked ‘Panama Papers’

Tax Month - September 2016

A cache of 1.3m leaked documents provides names of politicians and others linked to more than 175,000 Bahamian companies registered between 1990 and 2016. This cache of documents comes from the nation’s corporate registry. On 21.9.16, the International Consortium of Investigative Journalists (ICIJ), Süddeutsche Zeitung and other media partners are making this information available to…

Tasmania: Duties Amendment (Landholder and Corporate Reconstruction and Consolidation) Bill passes lower house – introducing landholder duty and legislated reconstruction relief

Tax Month - September 2016

The Duties Amendment (Landholder and Corporate Reconstruction and Consolidation) Bill 2016 has passed the Tasmanian House of Assembly without amendment and will now move to the Legislative Council. It proposes to amend Chapter 3 of the Duties Act 2001 (Tas), which deals with the duty liability for indirect transfers of land, by changing the assessment…

Re Silver Mines Limited v Minister for IRD – no extension of time for R&D applications – death of director not unexpected and failure of tax agent to advise could be ‘exceptional circumstances’ but delay was applicant’s

Tax Month - September 2016

The AAT has affirmed the decision of the Minister for Infrastructure and Regional Development not to exercise the discretion under the Industry Research and Development Act 1986 to grant the taxpayer an extension of time to register for R&D tax concessions for an engineering “conceptual process study” in relation to its silver mining  activities. The applicant…

Tech Mahindra Limited v FCT – Indian company with Australian PE liable for tax on income for services performed outside Australia as a ‘know-how’ royalty (despite the twists and turns in the Australia-India DTA)

Tax Month - September 2016

On 22.9.2016, the Full Federal Court has dismissed a taxpayer’s appeal, effectively upholding the judgment of Perry J at first instance (in Tech Mahindra Limited v FCT [2015] FCA 1082). At first instance, Perry J, held that a company resident in India and registered in Australia, and which carried out IT services for Australian clients both…

BHP Billiton releases Economic Contribution and Payments to Governments Report 2016

Tax Month - September 2016, Uncategorized

On 21.9.16, BHP Billiton released its Economic contribution and payments to governments Report which shows the company’s total economic contribution globally in the 2016 financial year was US$26.7 billion. This includes US$3.7 billion globally in taxes, royalties and other payments to governments. Releasing the report, BHP Billiton Chief Financial Officer Peter Beaven said the company’s…

Caratti v Commissioner of the Australian Federal Police (No 2) – Validity of search warrants upheld re tax investigation of alleged $15m fraud

Tax Month - September 2016

A taxpayer has been unsuccessful before the Federal Court in seeking to challenge the validity of search warrants issued in respect of premises related to the taxpayer and associated companies under a joint investigation into “suspected non-declaration of income, the deception of the ATO in order to refrain or limit the taxation paid by the…

Bitcoin is money – US judge says bitcoin was ‘funds’ for the purposes of a US prosecution for unlicensed money transmitting business

Tax Month - September 2016

Bitcoin qualifies as money, a US Federal District Court Judge ruled on 19 September, in a decision linked to a criminal case over hacking attacks against JPMorgan Chase & Co and other companies. Reuters said US District Judge Alison Nathan in Manhattan rejected a bid by Anthony Murgio to dismiss 2 charges related to his alleged operation of…