Car expense deductions: ATO information about the move to a single 66¢/km rate from 1 July 2015, with alternative 3 rate option for the 2016 FBT year (ended 31 March 2016)

Tax Month - March 2016

The ATO has updated information about use of the cents per km basis for claiming care expenses and for fringe benefits calculations. From 1 July 2015, separate rates based on the size of the engine are no longer available. Taxpayers can use a single rate of 66 cents per kilometre for all motor vehicles for the 2015-16 income year.…

SMSFs that receive trust distributions – ATO is reviewing for ‘non-arm’s length income’ purposes (beware)

Tax Month - March 2016

The ATO is reviewing self-managed super funds (SMSFs) that have received trust distributions. The income diverted into these SMSFs appears to be non-arm’s length and utilise tax concessions. We are looking at complex arrangements between related entities in a private group that result in large capital gains or inflated income being distributed to SMSFs. This is…

CR 2016/18-20; PR 2016/2 & addendum  – FBT salary packaging arrangements; liquidation of forest MISs; CommBank PERLS VIII Capital Notes; investing in ‘ANZ Cobalt’ and GST on dentist’s supplies

Tax Month - March 2016

On Wed 30.3.2016, the ATO issued the following Class Rulings and Product Ruling: Class Ruling CR 2016/18: FBT: employer clients of Community CPS Australia Limited trading as Beyond Bank Australia who are subject to the provisions of either s 57A or s 65J of the FBTAA and make use of the Salary Packaging Card facility; Class Ruling CR 2016/19: Liquidation…

SME employers to be ready for electronic ‘SuperStream’ contributions to superannuation funds by 30 June 2016 – ATO reminder

Tax Month - March 2016

More than 60% of all Australia’s small businesses are already on board with SuperStream. If your business is not one of them, you’ve got just 100 days remaining to get it done. With the 30 June 2016 rapidly approaching, the Australian Taxation Office (ATO) is encouraging small businesses to make becoming SuperStream ready a priority.…

LCG 2016/D2 and LCG 2016/D3 – Small Business Restructure Rollover – guide on consequences of rollover and meaning of ‘genuine restructure of an on-going business’

Tax Month - March 2016

On Thur 24.3.1016, the ATO issued 2 Draft Law Companion Guidelines on the new small business restructure roll-over in Subdiv 328-G of the ITAA 1997, which takes effect on 1 July 2016. Draft Law Companion Guideline LCG 2016/D2 explains the consequences and adjustments that occur when the transferor and transferee choose to apply the small business restructure roll-over. This is…

NSW: State Revenue Legislation Amendment Bill introduced – widen Council payroll tax exemption; make further provision for ‘corporate reconstruction’ duty relief

Tax Month - March 2016

The State Revenue Legislation Amendment Bill 2016 (NSW) was introduced in the NSW Legislative Assembly on 22 March 2016. The key amendments are as follows: amends the Payroll Tax Act 2007 (NSW) to extend an exemption from payroll tax applying to wages paid by a wholly-owned subsidiary of a local council to wages paid by a body corporate wholly owned by…

DCT v Frangieh (No 2) – Secrecy provisions not breached by ATO when tax return tendered in civil matter

Tax Month - March 2016

The NSW Supreme Court has held that a Deputy Commissioner did not disclose protected information when a copy of the taxpayer’s tax return was tendered in civil proceedings against the Deputy Commissioner. The Deputy Commissioner had issued recovery proceedings against the taxpayer. In an amended statement of claim, it was alleged the taxpayer owed $3.3m…

OECD releases standardised electronic format for exchange of BEPS Country by Country (CbC) reports of tax information

Tax Month - March 2016

On Tuesday 22.3.16, the OECD released its standardised electronic format for the exchange of Country-by-Country (CbC) Reports between jurisdictions – the CbC XML Schema – as well as the related User Guide. The CbC XML Schema is part of the OECD’s work to ensure the swift and efficient implementation of the BEPS measures. CbC Reports, to be electronically transmitted…

GSTD 2016/D1 – GST: incorrect increasing adjustments for supplies – the Commissioner proposes to rule that Div 142 would preclude a refund unless the ‘excess’ has been refunded to the recipient

Tax Month - March 2016

The Commissioner released Draft GST Determination GSTD 2016/D1, on Wed 23.3.2016. It considers whether Div 142 of the GST Act (about restrictions on GST refund) can apply to prevent refunds of incorrectly imposed increasing adjustments for supplies and concludes it can. Under Div 142, a supplier is generally not entitled to a refund of overpaid GST until the…

The 2013-14 Report on Entity Tax Information – Tax Transparency Report for 321 Privately Owned Australian Entities

Tax Articles

Tax Transparency: reporting of entity tax information In making this private companies report, the Commissioner recognises that he has a legislative duty to report certain specified information (including the amount of tax paid) by certain corporate tax entities for the 2013–14 income year and later income years under s3C of the Taxation Administration Act 1953 (TAA). These…