On 6 November 2013, the Government announced its intention to proceed with the previously announced proposal to restrict GST refunds with some amendments. The proposal for restrictions on GST refunds had been announced by the previous Government in August 2012 and detailed in the 2012-13 MYEFO. Following consultation on draft legislation, the proposal was introduced into the House of…
The Tax Office is writing to tax agents who still lodge tax returns by paper to encourage them to lodge electronically. The ATO says that from 2014, lodgment program concessional due dates will only be available to lodgments received electronically. These changes will apply from: 2013-14 income tax returns lodged after 1 July 2014; 2013-14 FBT returns…
The ATO on Thur 20.2.2014, issued Practice Statement PS LA 2014/1 to provide guidance to ATO personnel on how the Commissioner administers penalties for failure to comply with Ancillary Fund Guidelines. It also provides guidance on when directors of a corporate trustee may have a defence to the administrative penalties and when the Commissioner may remit such penalties. Broadly,…
The ATO on Fri 7.2.2014, released ATO ID 2014/1 (Discharge of debt arising from the provision of services – changing from cash to accruals accounting). The ID deals with the following: Where the method of accounting changes from cash to accruals basis in an income year, does s 118-20 of the ITAA 1997 apply to reduce…
The ATO on Wed 26.2.2014, issued the following Product Rulings: PR 2014/2: Challenger Care Annuity. It applies prospectively from 1 July 2013 to entities that enter into the scheme from 1 July 2013 until 30 June 2016. Broadly, the Ruling states that regular payments made to the holder of the annuity are assessable income under s 27H(1) to the extent that the…
The ATO on Wed 12.2.2014, released the following Class Rulings: CR 2014/16: Downer EDI Limited Long Term Incentive Plan. It applies from 1 July 2013. Broadly, the Ruling states that the rights acquired under the plan are ESS interests for the purposes of s 83A-340 of the ITAA 1997 and that no amount will be included in the…
The ATO on Wed 12.2.2014, released the following Class Rulings: CR 2014/16: Downer EDI Limited Long Term Incentive Plan. It applies from 1 July 2013. Broadly, the Ruling states that the rights acquired under the plan are ESS interests for the purposes of s 83A-340 of the ITAA 1997 and that no amount will be included in the…
The ATO on Wed 5.2.2014, issued Class Ruling CR 2014/15 (Format of mobile phone receipt as evidence for donations to Vision Australia Ltd via SMS). It applies from 1 February 2014 until 30 June 2019. The Ruling states the Commissioner accepts the mobile invoice as satisfying the requirements under s 30-228 of the ITAA 1997 provided the receipt identifies the…
This TD, released on Wed 26.2.2014, states broadly the Commissioner’s view that a dividend access share arrangement of the type described in the Determination is a scheme “by way of dividend stripping” or “in the nature of dividend stripping” within the meaning of s 177E of Pt IVA of the ITAA 1936. As a consequence, it…
The ATO on Tue 4.2.2014, issued a Decision Impact Statement on the Full Federal Court’s decision in Parliamentary Trustee of the Parliamentary Contributory Superannuation Fund v FCT [2013] FCAFC 127. In that case, the Full Court upheld the constitutional validity of superannuation contributions surcharge tax assessments under the Superannuation Contributions Tax (Assessment and Collection) Act 1997…