Yearly Archives: 2016

$500,000 lifetime cap on non-concessional super contributions – legislation currently being developed (per ATO website)

In the 2016-17 Federal Budget, the Government announced that from 7:30pm (AEST) on 3 May 2016, there will be a lifetime cap of $500,000 on non-concessional superannuation contributions. The cap will take into account all non-concessional contributions made on or after 1 July 2007. The ATO says the lifetime cap will be indexed to the Average Weekly Ordinary Time…

CR 2016/54 Income tax: AMP Capital Infrastructure Equity Fund – Unit trust (for non-controlling interests in infrastructure assets) creates a new unit trust (for controlling interests) and ‘staples’ the units together

On Wed 20.7.2016, the ATO issued the following Class Ruling: CR 2016/54: AMP Capital Infrastructure Equity Fund – creating a new stapled security.It applies from 1 July 2015 to 30 June 2016. [LTN 138, 20/7/16] [Link to income tax law – Income Tax Assessment Act 1997; Income Tax Assessment Act 1936] Subdivision 126-G of the ITAA97 126-220   Object of this Subdivision The object…

CR 2016/53: tax consequences for shareholders in APN News & Media Limited of demerger of NZME Limited

On Wed 20.7.2016, the ATO issued the following Class Ruling: CR 2016/53: APN News & Media Limited – demerger of NZME Limited. It applies from 1 July 2015 to 30 June 2016. LTN 138, 20/7/16] [Link to income tax law – Income Tax Assessment Act 1997; Income Tax Assessment Act 1936]   Extract from Class Ruling Class of entities 3. The class of entities to…

CR 2016/35 – Westpac Tier 1 capital – tax effect of holding non-cumulative, convertible, transferable, redeemable, subordinated, perpetual, unsecured notes (Westpac Capital Notes 4)

On Wed 20.7.2016 issued the following Class Ruling: CR 2016/52: Westpac Banking Corporation – Westpac Capital Notes 4 (‘WCN 4‘). It applies from the income year ended 30 June 2016 until the end of the term of the Capital Notes 4. [LTN 138, 20/7/16] [Link to income tax law – Income Tax Assessment Act 1997; Income Tax Assessment Act 1936] Extract…

DCT v Anglo American Investments Pty Ltd & Ors – Commissioner succeeds in recovering debt under ‘conclusivity’ provisions – no “conscious maladministration” as required in Denlay

The NSW Supreme Court has granted a Deputy Commissioner’s application to strike out amended defences of various taxpayers and enter judgment for the Commissioner for debt recovery action in relation to the issuing of amended assessments to them in connection with their tax affairs, which also involved the Commissioner obtaining information from the Cayman Islands.…

DCT v Fitzgerald – director’s DPN liability for company’s failure to remit $2m of PAYG withheld from salary and wages – deemed service was valid and no defence could be made out

On Thursday 14.7.2016, the NSW Supreme Court gave a judgment in favour of a Deputy Commissioner for a director’s penalty notice (DPN) in the sum of $1,965,485, which was the amount the company deducted from employees salary and wages (PAYG withholding) and failed to remit to the Commissioner. The Commissioner has the power though, to recover the…

CR 2016/51 – Scheme of Arrangement in which Unity Mining Limited returned capital to shareholders and Unity’s biggest shareholder bought the remaining Unity shares

On Wed 13.7.2016, the ATO issued the following Class Ruling: CR 2016/51: Return of Capital and Scheme of Arrangement – Unity Mining Limited. It applies from 1 July 2015 to 30 June 2016. Extract from ruling Ruling Return of capital is not a dividend 30. The ROC paid by Unity to the Unity Scheme Shareholders is not a dividend as defined in…

CR 2016/51: Scheme of Arrangement under which Unity Mining Limited returned capital to its shareholders and the largest shareholder bought the balance of the Unity shares

The ATO today [Wed 13.7.2016] issued the following Class Ruling: CR 2016/51: Return of Capital and Scheme of Arrangement – Unity Mining Limited. It applies from 1 July 2015 to 30 June 2016. Extract from ruling Ruling Return of capital is not a dividend 30. The ROC paid by Unity to the Unity Scheme Shareholders is not a dividend as…

CR 2016/50 – AMP Capital Community Infrastructure Fund – tax effect of a Div 6C ‘trading trust’ making a capital distribution and compulsorily reinvested into the stapled ‘non-trading’ trust

On Wed 13.7.2016, the ATO issued the following Class Ruling: CR 2016/50: AMP Capital Community Infrastructure Fund – capital reallocation. It applies from 1 July 2015 to 30 June 2016. Extract from Class Ruling Class of entities 3. The class of entities to which this Ruling applies is the unit holders of the AMP Capital Community Infrastructure Trading Trust (TT)…

LCG 2016/3 – Small Business Restructure Rollover – ATO guidance on meaning of ‘genuine restructure of an ongoing business’ (including various examples)

On Wednesday Wed 13.7.2016, the ATO released the following Law Companion Guideline: LCG 2016/3: Small Business Restructure Roll over: genuine restructure of an ongoing business and related matters. It explains the meaning of the term “genuine restructure of an ongoing business” in Subdiv 328-G of the ITAA 1997. Extract from ATO’s Law Guideline What this Guideline is about 1.…