The ATO on Thur 17.3.2016, issued Decision Impact Statements on the following: Orica Ltd v FCT [2015] FCA 1399 – In this case, the Federal Court held Pt IVA applied to a scheme whereby deductions of $112m were claimed for interest on inter-corporate loans made by an Australian subsidiary of a US corporate group. In doing so,…
The Treasury Legislation Amendment (Repeal Day 2015) Bill 2016 was on Wed 16.3.2016, passed by the House of Reps with 2 Opposition amendments. The amendments removed Sch 1 from the Bill. The Bill now proceeds to the Senate. Schedule 1 had proposed to simplify the superannuation guarantee (SG) charge and make the SG charge and penalty more proportionate to…
The Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016 was introduced in the House of Reps on Wed 16.3.2016. It proposes the following amendments. Early Stage Innovation Company amendments to the ITAA 1997 to encourage new investment in Australian early stage innovation companies with high growth potential by providing investors, who invest in such companies, by providing…
On 16 March 2016, the ATO announced a new product being the Practical Compliance Guideline, by way of a draft of the first of these: PCG 2016/D1. These Guides will provide taxpayers with “broad law administration guidance”. The ATO says that a PCG may set out the Commissioner’s view on relative levels of tax compliance risk, so that…
On 16th March 2016, the Minister for Tourism: Senator Richard Colbeck issued a press release announcing that the Government would review the so called ‘backpackers’ tax announced in the 2015 budget measure (see below). They are now concerned about it’s impact on Working Holiday Makers plans to visit Australia and particularly our global competitiveness as…
On 15 March 2016, judgment was handed down by the Full Federal Court (Kenny, Davies and Moshinsky JJ) in the matter of Rigoli v. Commissioner of Taxation [2016] FCAFC 38 (VID 475 of 2015). Mr Rigoli’s appeal was dismissed with costs. This appeal concerns what Mr Rigoli is required to prove to discharge the burden of…
The Senate Economics References Committee on 11 March 2016 finally released its report into the structure and development of forestry (or agribusiness) managed investment schemes (MIS). It was originally due for release by 27 October 2014. Their terms of reference were issued after the spectacular crash of Timbercorp, Great Southern and others, creating legal turmoil, agricultural fall out and harrowing financial…
On 11 March 2016, the Senate Economics References Committee finally released its report into the structure and development of forestry (or agribusiness) managed investment schemes (MIS). It was originally due for release by 27 October 2014. The Preamble the Committee notes: “In 2009, two of Australia’s largest agribusiness managed investment schemes (MIS) failed—Timbercorp and Great Southern. In quick succession, a…
On 10 March 2016, Full Federal Court handed done its decision which was to overturn the decision at first instance decision in favour of the Commissioner: [2015] FCA 53. The facts in this case involved a family trust that had owned units in a unit trust prior to the introduction of capital gains tax on 20 September 1985 (therefore…
On Friday 11 March 2016, the ATO advised (on its website) that there are three weeks left to notify us if you think your arrangements may be within the scope of the Multinational Anti-Avoidance Law (MAAL). If you meet the definition of a significant global entity (AUD 1b turnover) and are potentially impacted by the…