The AAT has confirmed that 3 companies, that were in effect owned and controlled by one director, were liable to FBT and 75% administrative penalties over a 4-year period for failing to lodge FBT returns in relation to several luxury cars. The penalties amounted to over $250,000. The resulted in an overall liability of over…
The 2016 edition of the OECD’s annual Revenue Statistics publication shows that the OECD average tax-to-GDP ratio rose slightly in 2015, to 34.3%, compared to 34.2% in 2014. This is the highest level since the Revenue Statistics series began in 1965. An increase in tax-to-GDP levels was seen in 25 of the 32 OECD countries that provided preliminary data…
This Bill was introduced into Parliament on 1 December 2016 and amends (amongst other things): The Corporations Act 2001 to provide that employee share scheme disclosure documents lodged with the Australian Securities and Investments Commission are not made publicly available for certain start-up companies; and The Income Tax Assessment Act 1997 to update the list…
On 29 November 2016, the Government released draft legislation for comment to implement its proposed Diverted Profits Tax (DPT), which was announced in the 2016-17 Federal Budget. It proposes to enable the Commissioner to impose a penalty tax rate of 40% on profits diverted in breach of the rules – that is: on profits that…
T a x T e c h n i c a l – M o n t h l y N e w s – December 2016 Developments – This is a collection of developments in Australian tax law and practice that occurred in November 2016 which aims to be relevant to tax practitioners.[i] Compiled By F John…
The NSW Supreme Court has ordered that a company with a significant tax debt be wound up. PSI Pty Ltd was the trustee of a discretionary family trust (SFT). The primary beneficiary of the trust was PS (also the appointor). In July 2014, the DCT obtained a default judgment against the Trustee (PSI) for income tax assessed…
The Commissioner issued this draft determination on Wed 30 Sept 2017. The draft determination asks: where an amount included in a beneficiary’s assessable income under subsection 99B(1) of the Income Tax Assessment Act 1936 (ITAA 1936) had its origins in a capital gain from non-taxable Australian property of a foreign trust, can the beneficiary offset…
The Commissioner issued this draft determination on Wed 30 Sept 2017. The draft determination asks: does the residency assumption in the definition of the tax law definition of ‘net income’ (in s95(1) of the Income Tax Assessment Act 1936) apply for the purpose of s855-10 of the Income Tax Assessment Act 1997), which disregards certain…
On 24 Nov 2016, the OECD announced that more than 100 jurisdictions have concluded negotiations on a multilateral instrument that will swiftly implement a series of tax treaty measures to update international tax rules and lessen the opportunity for tax avoidance by multinational enterprises. [Australia is amongst those countries.] The new instrument will transpose results…
On 24 November 2016, the Foreign Investment Review Board (FIRB) released its Guidance Note No 47 on tax conditions for foreign investment approvals. It includes a template for reporting back to FIRB on compliance with tax conditions. [FIRB website] [LTN 230, 28/11/16] This Guidance Note outlines circumstances in which the Treasurer will consider tax‑related conditions and serves…