Yearly Archives: 2016

LCG 2016/2 – Small Business Restructure Rollover – ATO guide on the tax consequence of this rollover (by way of various examples)

On Wed 13.7.2016, the ATO released the following Law Companion Guideline: LCG 2016/2: Small Business Restructure Roll over: consequences of a roll over. It explains the tax consequences and adjustments that occur when the transferor and transferee choose to apply the small business restructure rollover (‘SB Restructure Rollover‘) in Subdiv 328-G of the ITAA 1997. Extract from Subdiv…

Rawson Finances Pty Ltd v FCT – Commissioner denied permission to take evidence from the chair of an Israeli bank as there was no evidence she had personal knowledge and the subpoenaed documents were defacto discovery (not ‘in aid of’ this examination)

On Tuesday 12.7.2016, the Full Federal Court unanimously allowed a taxpayer’s appeal and held that the orders of the primary judge (which provided for the issue of a draft letter of request to a foreign bank) should be set aside. The letter of request had been sought by the Commissioner to be issued to the judicial…

OECD releases standardised IT-format for providing feedback on received Common Reporting Standard information

11/07/2016 – The OECD has today released its standardised IT-format for providing structured feedback on exchanged Common Reporting Standard information – the CRS Status Message XML Schema – as well as the related User Guide. With the first exchanges under the Common Reporting Standard for automatic exchange of financial account information being scheduled for September 2017, jurisdictions are now…

OECD releases standardised IT-format for the exchange on tax rulings under BEPS Action 5

11/07/2016 – The OECD has today released its standardised IT-format for the exchange on tax rulings (ETR) between jurisdictions – the ETR XML Schema – as well as the related User Guide. The ETR XML Schema is part of the OECD’s work to ensure the swift and efficient implementation of the BEPS measures, endorsed by G20 Leaders…

OECD releases discussion draft on the design and operation of the group ratio rule under BEPS Action 4

11/07/2016 – Interested parties are invited to provide comments on a discussion draft which deals with elements of the design and operation of the group ratio rule under Action 4 (Interest deductions and other financial payments) of the BEPS Action Plan. In October 2015, the BEPS Action 4 Report Limiting Base Erosion Involving Interest Deductions and Other Financial…

Vic stamp duty: Arrigo v Comr of State Revenue – transfer of subdivided apartments in old ‘stratum’ title, to unit holder, held exempt from duty under s36 for transfers to beneficiaries of a fixed trust

A taxpayer has been successful before the Victorian Civil and Administrative Tribunal in seeking a duty exemption in relation to a transfer of land to him from a company under s36 of the Duties Act 2000 (Vic) (property passing to beneficiaries of fixed trusts). The background facts were complex. The Tribunal heard details of a “trust company”…

SA 2016-17 Budget tax announcements & Bill – payroll rebate; off-the-plan stamp duty concession; PPR land tax exemption all extended; sports groups land tax emption expanded; 15% wagering tax introduced

The 2016-17 SA Budget was handed down on Thursday 7.7.2016. The SA Treasurer, Tom Koutsantonis, announced a budget surplus. Mr Koutsantonis also announced the following tax proposals: extending the small business payroll tax rebate – The small business payroll tax rebate introduced in the 2013-14 Budget will be extended for a further 4 years to 2019-20. extending and expanding…

Qld Land Tax: Harrison v Comr of State Revenue – 3 houses taxed in aggregate rather than separately as not held on trust for each of their 3 children – houses leased to children and transfer on death under mutual wills

A taxpayer has been unsuccessful before the Qld Civil and Administrative Tribunal in arguing that there was a “constructive trust” in relation to 3 properties. The taxpayer had purchased 3 residential properties for each of his 3 children to live in. There were agreements between the children and their parents that they would pay their…

Ransley v FCT – Stay of wife’s tax appeal until husband’s related committal was heard – relating to charges of obtaining advantage for stating that the relevant mine was acquired as a ‘training mine’

The Federal Court has allowed a taxpayer’s application to stay proceedings of her appeal, against amended assessments, until determination of committal criminal proceedings against her husband which were related to the transactions that gave rise to the amended assessments. In doing so, the Court found that she would otherwise suffer “real prejudice” in her appeal…

EU Parliament votes in favour of tax report recommendations for tax haven blacklist, patent box rules, code of conduct for tax advisers, etc

The EU Parliament voted in favour (514 to 68, 125 abstentions) of recommendations made in a report by Parliament’s Special Committee on Tax Rulings II on 6.7.16. These recommendations were for: an EU register of beneficial owners of companies; a tax havens blacklist; sanctions against non-cooperative tax jurisdictions; action against abuse of “patent box” regimes; a code of…