The Tax Office has advised that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the 2nd quarter of the 2014-15 financial year (ie 1 October 2014 to 31 December 2014) are as follows: GIC annual rate is 9.63%; GIC daily compounding rate is 0.02638356%; SIC annual rate is 5.63%; SIC daily compounding rate is 0.01542466%…
The ATO on Wed 17.9.2014, issued the following Class Rulings: CR 2014/72: Tax treatment of transfer payment to employees of Sydney Trains; and CR 2014/73: FBT: employer clients of Toyota Finance Australia Limited who provide car fringe benefits under novated lease arrangements incorporating the payment of insurance premiums. The ATO has issued Product Ruling PR…
ATO Deputy Commissioner Mark Konza delivered a speech on the ATO’s response to global tax avoidance to the Committee for Economic Development of Australia on 26 August 2014. Mr Konza said the ATO has “broken new ground by working closely with a number of other countries’ tax administrations to pool our knowledge of the global operations of…
The ATO has released draft guidelines on how it will assess Pt IVA risk applying to the allocation of profits from a professional firm carried on through a partnership, trust or company, where the income of the firm is not personal services income. ATO Deputy Commissioner Michael Cranston said the draft guidelines explain how professionals…
This Draft TD, issued on Wed 24.9.2014, and states that where a right to acquire a beneficial interest in a share is granted subject to shareholder approval and an employee acquires only a right to have the matter put to the shareholders and nothing more, that right is not an “indeterminate right” within the meaning…
This Draft Determination, released on Wed 17.9.2014, states that a payment received by a personal services entity (PSE) from a service acquirer during a period the service provider is not providing services to the acquirer until further called upon, is personal services income (PSI) within the meaning of s 84-5(1) of the ITAA 1997. DATE OF…
The ATO has issued a Decision Impact Statement on the Full Federal Court’s decision in Chemical Trustee Limited v DCT[2014] FCAFC 27. The Statement sets out the ATO response to the case which it said concerned whether the Commissioner, having obtained judgment for an income tax debt, was prohibited from obtaining judgment for an income…
The taxpayer has appealed to the Federal Court against the decision in AAT Case [2014] AATA 622, Re Coshott and FCT. In that case, the AAT affirmed that a taxpayer was liable to CGT on a payment made to her in respect of the settlement of litigation she pursued for breach of contract and negligence.…
The High Court has released the transcript of the Commissioner’s appeal against the Full Federal Court decision in MBI Properties Pty Ltd v FCT [2013] FCAFC 112. The High Court adjourned the appeal to a date to be fixed – FCT v MBI Properties Pty Ltd [2014] HCATrans 200. The Full Federal Court had overturned…
The Full Federal Court has refused to order a retrial in relation to a court declaration allowing a bankruptcy trustee to claw-back a former tax lawyer’s $5m gift to his family trust on the grounds that it was intended to defeat an impending tax liability. The former tax lawyer had made $5m in contributions to…