NFF lobbies against ‘backpackers’ tax – un-legislated 2015 Budget measure imposing minimum 32.5% tax through denying ‘resident’ status

Tax Month 2016-02

The National Farmers’ Federation (NFF), along with its member organisations, on Tuesday 2.2.2016, launched a campaign encouraging the Federal Government not to proceed with the proposed so-called “backpacker tax” which the NFF says will erode the agriculture workforce and the prosperity of regional communities. The campaign has been supported by the Tourism & Transport Forum Australia.…

Thomas v FCT – Taxpayer appeals decision that franking credits and their respective dividends cannot be separated (for tax purposes at least)

Tax Month 2016-02

The taxpayer has appealed to the Full Federal Court against the decision in Thomas v FCT [2015] FCA 968. In that case, the Federal Court held that a discretionary trust could not distribute franking credits to an individual beneficiary differently from the manner in which the net income of the trust was resolved to be distributed. At the same…

Normandy Finance Pty Ltd v FCT – Commissioner appeals against decision that receipts from overseas company were genuine loans not income

Tax Month 2016-02

The Commissioner has appealed to the Full Federal Court against the decision in Normandy Finance Pty Ltd v FCT [2015] FCA 1420. The Federal Court had held that payments of around $4m made from a foreign company to its Australian subsidiary and another related company over several years were genuine loans, and not “shams”. [LTN 19, 1/2/16]

Re Ogden and FCT – Large home office and work-related deduction claims significantly reduced – largely used or consumed by family

Tax Month 2016-02, Uncategorized

A professional sales commission agent has been largely unsuccessful before the AAT in claiming deductions for work-related expenses, including home office expenses, various grocery items and overtime meal allowances. The taxpayer had similar deductions disallowed by the AAT in Re Odgen and FCT [2014] AATA 385 in respect of a different income year. In the current proceedings,…

Google to pay A$265 million (UK£130 m) in tax settlement with UK HMRC – critics say it’s too little – basis for future tax returns agreed

Tax Month 2016-01

Reuters has reported “Google has agreed to pay 130 million pounds (A$265 m) in back taxes to Britain, prompting criticism from opposition lawmakers and campaigners who said the “derisory” figure smacked of a “sweetheart deal”. Google, now part of Alphabet Inc (GOOGL.O), has been under pressure in recent years over its practice of channeling most…

BEPS transparency progress: Australia signs agreement for automatic exchange of ‘Country-by-Country reports (CbC reports)

Tax Month 2016-01

On 27 January 2016, the OECD announced that, as part of it’s member countries’ continuing efforts to boost transparency by multinational enterprises (MNEs), 31 countries[1] (including Australia) signed the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of Country-by-Country reports. The signing ceremony marked an important milestone towards implementation of the OECD/G20 BEPS Project…

EU response to OEDC BEPS recommendations

Tax Month 2016-01

On 28 January 2016, the European Commission issued a ‘Fact Sheet’ by way of press release, covering the EU’s response to the OECD ‘Base Erosion and Profit Shifting’ (BEPS) recommendation under it’s 15 ‘Action Points’. This Fact Sheet included the following table [though, I’ve added the equivalent Australian measures already in place which included the…

Kocharyan v FCT – taxpayer loses appeal about losses in forestry MIS investment – none of the technical appeal grounds upheld

Tax Month 2016-01

The Full Federal Court has rejected a taxpayer’s appeal against the decision of Jessup J in January 2015 concerning amended assessments. The Federal Court (in Kocharyan v FCT [2015] FCA 13) had rejected all 3 of the taxpayer’s grounds of appeal. The Commissioner had originally denied the taxpayer deductions of close to $1m for the 2006 and 2007 years…