Limited AFS licence for SMSF advice – transitional period has ended; Corps Act requirements (client’s best interests and no ‘conflicted’ remuneration); contingency plan until licence issues; relevant experience’ now required

Tax Month - July 2016

On 30 June 2016, the transitional period for recognised accountants who provide self-managed superannuation fund (SMSF) related financial advice ended. Recognised accountants who lodged applications with ASIC between 1 July 2013 and 30 June 2016, who were professional practising certificate members of CPA Australia, Chartered Accountants Australia & New Zealand or the Institute of Public…

Transfer Pricing and Country-by-Country Reporting – ATO uploads a ‘High Level Design’ guidance for the requirement to lodge the ‘Local File’ under existing law starting this year

Tax Month - July 2016

The ATO has made available (on it’s website) a document which it calls: ‘Local File – high level design’ to help taxpayers understand their new reporting requirements as part of Country-by-Country (CbC) reporting. The Local File is of one of three statements multinational entities, with an annual global income of at least A$1 billion, are required to provide…

CR 2016/49 – demerger of Graphex Mining Limited: Share transfer not a ‘dividend’; not s45A/B/C capital benefit; CGT effect including electing ‘rollover relief’ by resident shareholders

Tax Month - July 2016

On Wednesday 6.7.2016, the Commissioner issued the following Class Rulings: CR 2016/49: demerger of Graphex Mining Limited by Indiana Resources Limited. It applies from 1 July 2015 to 30 June 2016. [LTN 128, 6/7/16] Extract from Ruling Dividend consequences – all Indiana shareholders 28. No part of the value of a Graphex ordinary share distributed to an Indiana shareholder will…

CR 2016/48 – NAB Capital Notes 2 – franking credits on convertible notes (streaming, s177EA etc.); not traditional securities; CGT on conversion; no s45A/B capital benefits; etc

Tax Month - July 2016

On Wednesday 6.7.2016, the Commissioner issued the following Class Rulings: CR 2016/48: National Australia Bank Limited – issue of NAB Capital Notes 2. It applies to Australian resident holders of NAB capital Notes 2. It applies from 1 July 2015 to 30 June 2025. [LTN 128, 6/7/16] Extract from Ruling Acquisition time of the NAB Capital Notes 2 64. Holders…

Caratti v FCT – Taxpayer gets interlocutory order preventing the Commissioner taking recovery action, despite breach of security arrangements because of alleged failure of Commissioner to give notice before taking action

Tax Month - July 2016

A taxpayer has been successful in interlocutory proceedings before the Federal Court in preventing the Commissioner from taking recovery action in respect of a tax debt of some $11m. The Commissioner sought to institute the recovery action on the basis that the taxpayer had breached a term of a deed that the parties had entered…

Re Azer and FCT – Excess concessional super contributions salary sacrificed super from various jobs – no special circumstances and no reallocation

Tax Month - July 2016

An individual taxpayer has been unsuccessful before the AAT in seeking to have excess concessional contributions for the 2014 financial year disregarded or reallocated pursuant to s291-465 of the ITAA 1997. The taxpayer was a full-time employee in the Victorian Public Service and also worked a number of part-time, casual jobs with approximately 4 employers.…

FCT v Oswal (No 6) – Court finds mortgages void as being an alienation of property with intent to defraud creditors (including the Commissioner as it turned out)

Tax Month - July 2016

The Federal Court has found for the Commissioner in holding that mortgages granted by the first respondent over 2 valuable residential properties in suburban Perth in favour of the second respondent, Mercury Services Limited, were void pursuant to s 89(1) of the Property Law Act 1969 (WA) (PLA) as being an alienation of property with intent to defraud…

FCT v Oswal (No 6) – Court finds mortgages void as being an alienation of property with intent to defraud Commissioner

Tax Month - July 2016

The Federal Court has found for the Commissioner in holding that mortgages granted by the first respondent over 2 valuable residential properties in suburban Perth in favour of the second respondent, Mercury Services Limited, were void pursuant to s 89(1) of the Property Law Act 1969 (WA) (PLA) as being an alienation of property with intent to defraud…

Re XLPZ and FCT – Tax debt not released because the ‘serious hardship’ was independent of the $58k tax debt (there were $300k of other liabilities beyond the value of his assets)

Tax Month - July 2016

An individual taxpayer has been unsuccessful before the AAT in seeking to be released from tax debts pursuant to s340-5 of Sch 1 to the Taxation Administration Act 1953. The taxpayer had tax debts of some $58,000 which arose because of early access to his self-managed super fund (SMSF). The AAT said it was the taxpayer’s…