Yearly Archives: 2016

Tech Mahindra Limited v FCT (No 2) – Suppression order refused for unsuccessful taxpayer found to be subject to Australian royalty withholding tax on payments for work done in India

On Wed 12.10.2016, the Full Federal Court refused a taxpayer’s request for suppression or non-publication orders under Pt VAA of the Federal Court of Australia Act 1976, in particular s37AF, in relation to certain information claimed to be confidential information. The Court gave judgment on 22 September 2016 on the substantive issues in the appeal, in Tech…

CR 2016/70-72 – Scrip-for-scrip rollover for merger of OneVue Holdings Limited and Diversa Limited; Scrip-for-scrip rollover for Royal Dutch Shell plc; off-market share buy-back for Telstra Corporation Limited

On Wed 12.10.2016, the ATO issued the following Class Rulings: CR 2016/70: Scrip for scrip roll-over: merger of OneVue Holdings Limited and Diversa Limited. It applies from 1 July 2016 to 30 June 2017. CR 2016/71: Royal Dutch Shell plc. combination with BG Group plc – CGT scrip for scrip roll-over. It applies from 1 July 2015 to 30 June 2016. CR 2016/72:…

TR 2016 /D2 – draft ruling on when an equity distribution received by an Australian corporate tax entity, from a foreign company, is NANE income

On Wed 12.10.16, the ATO issued Draft Taxation Ruling TR 2016/D2 to provide guidance on the participation test in Subdiv 768-A of the ITAA 1997 when working out whether an equity distribution received by an Australian corporate tax entity from a foreign company is not assessable and not exempt (NANE) income. Subdivision 768-A provides that…

‘Backpacker Tax’ – Bills introduced to implement a 19% tax to $37k, a registration system for employers with a 19% withholding rate, reduced visa price, increased passenger movement charge and Parliamentary report

The Governement introduced a package of 4 Bills to implement the ‘backpacker tax’ changes, it announced on 27 September 2016, that will tax working holiday makers in a particular way (most notably by imposing a 19% tax rate from the first dollar of assessable income, up to $37,000, at which point normal resident marginal tax…

NSW: duty and land tax surcharges on ‘foreign persons’ – ruling adopting the extensions to the definition of ‘foreign person’ set out in the Foreign Acquistions and Takeovers Act 1975

The 2016 NSW Budget introduced a 4 per cent surcharge purchaser duty on the purchase of residential real estate by foreign persons from 21 June 2016. The surcharge is in addition to the duty payable on the purchase of residential property. Foreign persons will no longer be entitled to the 12 month deferral for the…

Treasury Laws Amendment (Income Tax Relief) Bill 2016 – increasing the threshold for the 32.5% rate to $87,000 – Senate Committee recommends that it be passed and it is ultimately enacted

The Treasury Laws Amendment (Income Tax Relief) Bill 2016 proposes to amend the Income Tax Rates Act 1986 to increase the third personal income tax threshold so that the rate of tax payable on taxable incomes from $80,001 to $87,000 for individuals is 32.5%. On 10.10.16, the Bill passed the House of Reps without amendment…

Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 (phased company tax rate reduction) – senate committee recommends passing it but Labor dissent recommends limiting reduction to $2m turnover

On 10.10.16, the Senate Economics Legislation Committee tabled its report recommending that the Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 be passed. However, in a dissenting report, Labor Senators proposed the following amendments to the Bill: only reduce the company tax rate to 27.5% for businesses with a turnover of less than $2m (the…

Tas: Duties Amendment (Motor Vehicle Industry Red Tape Reduction) Bill 2016 receives Royal Assent – broadening the permitted use of ‘demonstrator’ vehicles under the exemption

The Duties Amendment (Motor Vehicle Industry Red Tape Reduction) Bill 2016 (Tas) on 7 October 2016 received Royal Assent as Act No 34 of 2016. The Bill was introduced on 31 May 2016 and had passed all stages without amendment. The Bill amends the Duties Act 2001 (Tas) to broaden the permitted use of demonstrator vehicles under the duty…

Re ZDCW and FCT – Tax debt release refused because of non-essential assets, taxpayer mortgages given to his wife after first application and wife withdrawing her offer to contribute in the second application

A taxpayer has been unsuccessful before the AAT in seeking to be released from his tax debts under s 340-5 of Sch 1 to the TAA. The facts are summarized below and are set out in greater detail below in the extract from the Tribunal’s reasons. In 2006, the taxpayer was diagnosed with Parkinson’s disease and was…

Financial Synergy Holdings Pty Ltd v FCT – High Court refuses Commissioner leave to appeal – time for determining the market value of acquiring a pre-CGT asset remains its actual not deemed (pre-CGT) time

The High Court has refused the Commissioner special leave to appeal against the decision in Financial Synergy Holdings Pty Ltd v FCT [2016] FCAFC 31. The Full Federal Court had unanimously allowed the taxpayer’s appeal and held that for the purposes of determining the “allocable cost amount” (or cost base) of an asset that came…