ATO timetable for reporting of non-resident accounts (under ‘CRS’ & FATCA’) – starting 1 July 2017 and applying to all foreign accounts in the 2018 calendar year

Tax Month - May 2016

The ATO set out its timetable for implementation of banks and other financial institutions reporting accounts, held by non-residents, under the common reporting standard or ‘CRS‘ (implemented in Australia under the Tax Laws Amendment (Implementation of the Common Reporting Standard) Act 2016). There is an equivalent obligation to report accounts held by residents of the USA under…

Annual tax returns for the 2016 financial year – Commissioner registers ‘legislative instruments’ creating the requirement to lodge

Tax Month - May 2016

The requirement to lodge annual returns is created, under the relevant provisions, by the Commissioner making a Legislative Instrument No. 1 and he registered that instrument on Thursday 19.5.2016 for the 2016 tax year. The provisions cited as relevant are set out in the extract from the legislative instrument below. The instrument establishes due dates for lodgment…

DCT v Holton – Court upholds the liability of director for $264,000 the amount his company withheld from wages and had not remitted to the ATO

Tax Month - May 2016

The County Court of Victoria has granted judgment to the ATO for a Directors’ Penalty Notice after finding that the director had not established adequate defences against the ATO claim. The penalties related to PAYG amounts withheld but not remitted to the ATO by the company in question. The director did not dispute the debt…

Blank v FCT – High Court gives leave to the Taxpayer to appeal the 3-2 FFC decision that USD 160m paid, in instalments, on termination of his employment, based on his profit participation scheme, was ordinary income

Tax Month - May 2016

The High Court has granted the taxpayer special leave to appeal against the decision in Blank v FCT [2015] FCAFC 154. In a majority decision, the Full Federal Court dismissed the taxpayer’s appeal and confirmed that payments of US$160m he received in instalments following his termination from a company were assessable to him as ordinary income in the income…

CR 2016/29 & 30 – Bank clients using their debit card for entertainment fringe benefits and the application of the ‘scrip for scrip’ rollover provisions to the acquisition of ‘Recall Holdings Limited’

Tax Month - May 2016

On Wednesday 18.5.15, the ATO issued the following Class Rulings: CR 2016/29: FBT: employer clients of Community Sector Banking Pty Ltd who are subject to the provisions of either s57A (exempt benefits for PBI’s, hospitals etc.) or s65J (about rebatable employers) of the FBTAA that make use of a B-Entertained MasterCard debit card facility. It applies from 1 April 2016…

No ‘backpacker tax’ on 1 July 2016 – Government will review this proposed measure and enact any change prospectively

Tax Month - May 2016

The Deputy Prime Minister and Minister for Agriculture and Water Resources: Barnaby Joyce announced that a re-elected Turnbull-Joyce Government would not enact the ‘backpackers tax’ retrospectively back to 1 July 2016 (the date it was announced to commence). [The so-called “backpacker tax” is the Government’s 2015-16 Budget proposal to remove the tax-free threshold for overseas working holidaymakers in Australia with…

Bell Group companies in liquidation – WA legislation to give the WA Government discretion as to how to distribute the proceeds of the liquidations held to be unconstitutional as inconsistent with Federal tax legislation

Tax Month - May 2016

On Monday 16.5.16, the High Court unanimously held that the Bell Group Companies (Finalisation of Matters and Distribution of Proceeds) Act 2015 (WA) (the “Bell Act“) is invalid in its entirety by the operation of s109 of the Constitution because of inconsistency between its provisions and provisions of the Income Tax Assessment Act 1936 and the Taxation Administration Act…