PCG 2016/D16 on the meaning of ‘fixed interests’ and ‘fixed trusts’ including the Commissioner’s power to treat interests as ‘fixed’ under s272-5 of the ITAA36, Schedule 2F (relating to trust losses)

Tax Month - October 2016

On Wed 26.10.2016, the Commissioner released Draft Practical Compliance Guideline PCG 2016/D16 relating to the meaning of ‘fixed entitlements’ in ‘fixed trusts’ as defined in the trust loss provisions. This affects not only the requirements for a trust to carry forward losses but also a large number of provisions in income tax law, which are…

PCG 2016/D16 – Draft ATO guidance on the operation of the ‘fixed trust’ requirements in Income Tax and GST law – including the Commissioner’s power to treat relevant trust interests as ‘fixed’ when they would not otherwise be

Uncategorized

What this draft Guideline is about 1. This draft Guideline outlines the factors that the Commissioner will consider when deciding whether to exercise the discretion to treat an entitlement as being a fixed entitlement, which results in a trust being treated as a fixed trust under the trust loss provisions. The Commissioner must determine whether to exercise…

G20/OECD BEPS Project – network of more than 1,000 relationships now in place to automatically exchange information between tax authorities

Tax Month - October 2016

20/10/2016 – Today, as a further step to implement the OECD Common Reporting Standard (CRS), the first series of bilateral automatic exchange relationships were established among the first batch of jurisdictions committed to exchanging information automatically as of 2017. With still a year to go before the first exchanges of information on financial accounts pursuant to…

G20/OECD BEPS Project – Action 14: effective dispute resolution mechanisms to resolve tax treaty-related disputes – Key documents released to implement Mutual Agreement Procedure for ‘peer review and monitoring’

Tax Month - October 2016

20/10/2016 – Today the OECD released key documents, approved by the Inclusive Framework on BEPS, that will form the basis of the Mutual Agreement Procedure (MAP) peer review and monitoring process under Action 14 of the BEPS Action Plan. The Action Plan on Base Erosion and Profit Shifting identified 15 actions to address BEPS in a…

Re NZWINEIMPORTS Pty Ltd and FCT – AAT rules that WET and GST liability of wine importer to be recalculated

Tax Month - October 2016

The AAT has found that the Wine Equalisation Tax (WET) and the related GST liability of an Australian importer of New Zealand wine was to be recalculated on the basis that the Commissioner had adopted the wrong methodology in calculating the taxpayer’s WET liability in the circumstances. In arriving at its decision, the AAT essentially found that the taxpayer’s approach…

SMSF trustees using LRBAs to acquire assets – ATO announces voluntary survey to gather information (and NOT for compliance purposes)

Tax Month - October 2016

The ATO will be contacting some self-managed super fund (SMSF) trustees in November 2016 to participate in a survey about the use of limited recourse borrowing arrangements (LRBA) to acquire assets for their SMSF. The ATO said the survey is part of research to learn more about SMSFs’ use of LRBAs. It said participation is voluntary and…

Law Enforcement Legislation Amendment (State Bodies and Other Measures) Bill 2016 introduced – greater access to Cwth information and powers to state authorities and rectifying meaning of ‘lawfully acquired’ (proceeds of crime)

Tax Month - October 2016

The Government introduced the Law Enforcement Legislation Amendment (State Bodies and Other Measures) Bill 2016 into the House of Reps on Wed 19.10.2016. This Bill will amend the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, Australian Postal Corporation Act 1989, Crimes Act 1914, Criminal Code Act 1995, Privacy Act 1988, Proceeds of Crime Act 2002,…

CR 2016/73-80 – CGT scrip-for-scrip roll-overs; special dividend; early retirement scheme

Tax Month - October 2016

On Wed 19.10.2016, the Commissioner issued the following Class Rulings: CR 2016/73: Scrip-for-scrip roll-over – Caledonia group reorganisation: Caledonia Australia Trust; CR 2016/74 Scrip-for-scrip roll-over – Caledonia group reorganisation: Caledonia Australia No 2 Trust; CR 2016/75: Scrip-for-scrip roll-over – Caledonia group reorganisation: Caledonia Small Caps Trust; CR 2016/76: Scrip-for-scrip roll-over – Caledonia group reorganisation: Caledonia…

PCG 2016/10 – FBT: Fleet cars and simplified representative average business use approach for calculating car fringe benefits for 20+ employer chosen fleets under luxury car tax threshold

Tax Month - October 2016

On Wed 19.10.2016 the Commissioner issued Practical Compliance Guideline PCG 2016/10 (Fleet Cars: simplified approach for calculating car fringe benefits). The PCG outlines a simplified approach for calculating car fringe benefits that is expected to reduce the record-keeping burden on employers with large fleets by allowing them to rely on a representative average business use…

Re FKYL and FCT- sale of 4 new residential premises taxable – not rented for 5 years; ‘margin scheme’ did not reduce tax (no written agreement); building costs not fully creditable (non-creditable rental); 25% shortfall penalty

Tax Month - October 2016

The AAT has held that 4 properties sold by a taxpayer (a sole trader property developer) were new residential premises and therefore subject to GST. The taxpayer was registered for GST bought each of the 4 properties under the margin scheme and built residences on each of them for the purposes of sale. She did…