Daily Archives: February 15, 2017

*Tax Office website updates – including administrative treatment for abolition of $6,500 write-off which has not yet been repealed [56]

From the ATO website: Instant asset write-off and simplified depreciation – Administrative treatment – The ATO has noted the Government’s intention to repeal the provision allowing small businesses an accelerated initial deduction for motor vehicles. The ATO says taxpayers, including those who use early balancing substituted accounting periods, who lodge a tax return for the…

Individuals warned to get work-related deductions right: ATO [55]

The ATO has signalled that it will pay close attention to work-related expenses claimed as deductions by individuals when they lodge their 2013-14 tax returns. The ATO says incorrect expense claims are becoming easier for it to detect. This year, the ATO says it will not be limiting its attention to particular occupations. Rather, it…

Audit improvements from outside the ATO will be adopted more widely in the ATO: Commissioner’s speech [54]

The Commissioner on Thur 12.6.2014, addressed the Institute of Chartered Accountants Australia (ICAA) Practice Forum. Mr Jordan said the ATO has received feedback from tax and audit professionals who were recently recruited from outside the ATO. The staff provided feedback on how the ATO could improve the way it manages audits. Their suggestions included better project…

ATO ready to trial external compliance assurance process: ATO Commissioner [53]

The Commissioner on Tue 3.6.2014, spoke at the Corporate Tax Association annual convention. Mr Jordan said the ATO has been consulting on External Compliance Assurance (sometimes referred to as external compliance assurance process or ECAP). ECAP aims to leverage already rigorous external audit and assurance processes for public companies and give some taxpayers with turnovers of…

Draft Practice Statement PS LA 3624 released on Administrative Penalties under s284-75(3) of the TAA1 [51]

The ATO on Thur 26.6.2014, issued Draft Practice Statement Law Administration PS LA 3624 (Administration of the penalty imposed under s 284-75(3) of Sch 1 to the TAA). A taxpayer is liable to an administrative penalty under s 284-75(3) where: they fail to lodge a return, notice or other document by the due date for lodgment; and the…

Project Wickenby: AUSTRAC funds flow analysis 2012-13 [52]

AUSTRAC on Tue 3.6.2014, released analysis of funds flows between Australia and 13 tax secrecy jurisdictions. According to AUSTRAC, one of the effectiveness measures for Project Wickenby is decreased funds flows to, and increased funds flows from, the 13 tax secrecy jurisdictions of interest to the task force. Key findings reported by AUSTRAC are as…

PR 2014/12 – Almond project [50]

The ATO Wed 25.6.2014, issued Product Ruling PR 2014/12 (AIL Almond Grower Project – Swan Hill 2007 Growers (to 15 June 2007) – financial years ending 30 June 2013 and 30 June 2014). It applies to growers that enter into the scheme between 18 October 2006 and 15 June 2007. Among other things, the Ruling states that provided the activities are carried out as described…

PR 2014/9-11 – Option and loan facility; home buy savings account; timber project [49]

The ATO, on Wed 4.6.2014, issued the following Product Rulings: PR 2014/9: Tax consequences of investing in the UBS Structured Option and Loan Facility. It applies to entities that enter into the scheme from Wed 4.6.2014 until 30 June 2017. Among other things, the Ruling states that where the investor has an principal loan and does not…

CR 2014/50-53 – Return of capital; early retirement schemes [48]

The ATO on Wed 25.6.2014, released the following Class Rulings: CR 2014/50: Proposed return of share capital: IPE Limited. It applies from 1 July 2013 to 30 June 2015. Among other things, the Ruling states that the proposed return of capital will not be a dividend as defined in s 6(1) of the ITAA 1936. CR 2014/51: Nyrstar Port Pirie…

CR 2014/49 – Rugby Union education payments not assessable [47]

The ATO on Wed 18.6.2014, issued Class Ruling CR 2014/49 (Payments made under the Education and Training Grant Program provided by the Rugby Union Players’ Association). It applies from 1 April 2013. Broadly, the Ruling states that amounts received under the program are not assessable under either ss 6-5 or 15-2 of the ITAA 1997. [LTN 115,…