Debt- Equity rules – draft legislation to implement the Board of Taxation’s recommendations to aggregate schemes when they are interdependent and designed to operate together (giving integrity rules more certainty)

Tax Month - October 2016

On 10 October 2016, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP released Exposure Draft legislation and explanatory material to provide greater certainty in relation to integrity rules regarding the taxation of debt and equity. Australia’s tax rules classify financing arrangements as debt (with deductible interest) or equity according to their…

Re Edwards and FCT – Lump sum payment for arrears in workers’ compensation paid to a policeman assessable in year of receipt but eligible for smoothing tax offset

Tax Month - October 2016

The AAT has confirmed that a lump sum payment made by Comcare to a former Australian Federal Police officer for arrears of workers’ compensation was assessable in its year of receipt, and not over the income years to which it related. In doing so the AAT confirmed that the “appropriate” accounting method for the taxpayer,…

DCT v Acimovic – Commissioner succeeds in application for rectification of consent order for debt owed of $612,103

Tax Month - October 2016

A Deputy Commissioner has been successful, before the District Court of Queensland, in rectifying a consent order previously made by a registrar  in respect of a $600,000 debt owed by a taxpayer under s666 of the Uniform Civil Procedure Rules (Qld) (“the Rules”). The Court held that the consent order should never have been made…

PR 2016/8 – Investment in Luxembourg umbrella managed fund investing in Australian companies

Tax Month - October 2016

The ATO on Wed 5.10.2016, released Product Ruling PR 2016/8 (Tax consequences of investing in Wellington Management Funds (Luxembourg)). It applies to Australian residents who are accepted to participate in the scheme on or after 1 July 2016 and on or before 30 June 2019. [LTN 192, 5/10/16] Extract from ruling Ruling Subject to paragraph 3 of this Product…

CR 2016/68-69 – ANZ Capital Notes 4; merger of Royal Automobile Club of Queensland Limited and QT Mutual Bank Limited

Tax Month - October 2016

The ATO, on Wed 5.10.2016, issued the following Class Rulings: CR 2016/68: Australia and New Zealand Banking Group Limited – ANZ Capital Notes 4. It applies from 1 July 2016 to 30 June 2027. CR 2016/69: The scheme of arrangement – merger of Royal Automobile Club of Queensland Limited and QT Mutual Bank Limited. It applies from 1 July 2016 to…

Ward v FCT – no excess super contribution – a misleading super fund statement and adviser confusion were ‘special circumstances’ – Tribunal’s view too narrow, dicta out of context

Tax Month - October 2016

The Full Federal Court has, on Wed 5.10.2016, allowed a taxpayer’s appeal after ruling that the AAT erred by taking too narrow a view of what may constitute “special circumstances” under s292-465 of the ITAA 1997. The taxpayer and his wife had panicked during the GFC and withdrawn their superannuation nest egg to the safety of term…

Qld stamp duty: ‘additional (3%) foreign acquirer duty’ applies to AFAD residential land from 1 October 2016

Tax Month - October 2016

Australian Foreign Acquirer Duty Under Chapter 4 of the Duties Act 2001 (Qld), additional foreign acquirer duty (AFAD) is an extra 3% duty on top of the duty that applies to transactions that are liable for (1) transfer duty, (2) landholder duty or (3) corporate trustee duty. AFAD applies when all the following conditions are met:…

Re Kishore v Tax Practitioners Board – registration terminated for not acting with ‘honesty and integrity’ in separation from former employer (requirement not limited to ‘provision of tax agent services’ only)

Tax Month - October 2016

An applicant has been unsuccessful before the AAT in a matter concerning the Tax Practitioners Board’s decision to terminate his tax agent registration. The applicant became a registered tax agent on 7 March 2011 while working for his then employer (a firm which provided accounting and tax agent services). In July 2012, the applicant and 2 of his colleagues…

Death of a tax agent or BAS agent – next of kin please advise TPB for notice of the precise date when registration will cease (about 60 days after TPB notice)

Tax Month - October 2016

Following the death of an individual registered tax or BAS agent, it is important that a next of kin or other representative notify us. What we will do – Following notification of the death of an individual registered tax or BAS agent, we will: provide you with a written notice confirming that the agent’s registration…