TD 2016/17 – when a contractual right ‘becomes’ a right to acquire a beneficial interest in a share for the purpose of the ‘intermediate rights’ provisions in Div 83A (relating to employee share schemes)

Tax Month - November 2016

On Wed 2.11.2016, the ATO released Taxation Determination TD 2016/17, which outlines the circumstances in which a contractual right becomes a ‘right to acquire a beneficial interest in a share’ for the purposes of s83A-340(1) of the ITAA 1997. The Determination also applies to s83A-15 of the Income Tax (Transitional Provisions) Act 1997, where the same issue arises.…

ABN registration reviews to check entitlement: ATO and ABS to check a sample of 80k applications for entitlement to ABN – focus on individuals, partnerships and trust ABN’s issued Aug & Sept 2016

Tax Month - November 2016

The Australian Business Register (ABR) receives around 80,000 ABN registrations applications a month. Around 91% of these applications result in registrations being issued on the spot. The main reason ABNs are not issued for the others is a failure to establish the identity of the people behind the business. The ATO said it has been…

Shaw / Rablin v DCT – DPN summary judgment set aside – arguable defences for taking s269-35(2)(a) ‘reasonable steps’ to obtain finance for company to pay its liability and, on failing, to place the company into liquidation

Tax Month - November 2016

On Tuesday 1.11.2016, the Qld Court of Appeal allowed an appeal by 2 company directors against summary judgments made on 1 April 2016 for an aggregate $1.8m in Directors Penalty Notice (DPN) liabilities. It overturned the decision of Bond J, at first instance, in the Queensland Supreme Court in DCT v Rablin; DCT v Shaw [2016] QSC…

Superannuation sector – AUSTRAC’s first ‘money laundering and terrorism financing’ risk assessment

Tax Month - October 2016

On Mon 31.10.2016, AUSTRAC published the first money laundering and terrorism financing (ML/TF) risk assessment into Australia’s superannuation sector. The Minister for Justice, Michael Keenan, said the assessment was developed in close partnership with the superannuation industry and identified a range of opportunities for the sector to further harden itself against threats. AUSTRAC identified higher than…

FCT v Jayasinghe – Commissioner seeks leave to appeal the FFC majority decision that the taxpayer was entitled to tax exemption on his UN remuneration under international immunities legislation

Tax Month - October 2016

The Commissioner has lodged an application for special leave to appeal to the High Court against the Full Federal Court decision in FCT v Jayasinghe [2016] FCAFC 79. The Full Federal Court had by majority dismissed the Commissioner’s appeal from an AAT decision which had found that a taxpayer was exempt from his earnings as the…

Conveyancers may need to register with TPB – foreign resident capital gains withholding (lawyers are ok – they are exempted from regulation)

Tax Month - October 2016

Conveyancers may have clients that are impacted by new rules, in place since July 2016, that now apply to vendors disposing of certain taxable Australian property under contracts. Chair of the Tax Practitioners Board (TPB), Mr Ian Taylor, has advised conveyancers that they may need to register with the TPB, when assisting clients to meet new requirements under the foreign resident…

DRAFT Treasury Laws Amendment (Enterprise Incentives) Bill 2016: no s1274 public disclosure for ordinary share ESS interests, not listed, only offered to employees – if issuer is sub-10 year incorporated and sub-$50m turnover

Tax Month - October 2016

As part of the National Innovation and Science Agenda, the Government is taking steps to make it easier for employers to provide incentives to their employees through Employee Share Schemes (ESS). In particular, the Government has committed to: limit the requirement for disclosure documents given to employees under an eligible ESS and lodged with the…

Crowdfunding – ATO’s discussion paper about the tax implications for the ‘Promoter’, ‘Intermediary’ and ‘Contributors’

Tax Month - October 2016

Overview – Crowdfunding is the practice of using internet platforms, mail-order subscriptions, benefit events and other methods to find supporters and raise funds for a project or venture. As the industry expands and new developments arise, we will review and update the information. If you’re involved in crowdfunding – regardless of your role – you…

CR 2016/81-83 – Special dividend in Ascanio Scheme of Arrangement; early retirement schemes by ‘Ward McKenzie’ and ‘Henwood Downs’

Tax Month - October 2016

On Wed 26.10.2016, the Commissioner issued the following Class Rulings: CR 2016/81: Asciano Limited – Scheme of Arrangement and Special Dividend. It applies from 1 July 2016 to 30 June 2017. CR 2016/82: the “Ward McKenzie Early Retirement Scheme 2016”. It applies from 26 October 2016 to 31 December 2016. CR 2016/83: the “Henwood Downs Early Retirement Scheme 2016”. It applies from 26 October 2016…