The ATO on Wed 27.2.2013, released the following Class Rulings: CR 2013/15: Leighton Holdings Limited Equity Incentive Plan. It applies from 1 January 2012. Broadly, the Ruling states that the rights acquired under the incentive plan are indeterminate rights for the purposes of s 83A-340 of the ITAA 1997 and will be treated as rights to acquire a…
The ATO on Thur 7.2.2013, amended Practice Statement PS LA 2011/5, which deals with the recovery by the ATO of administrative overpayments, and outlines the circumstances and risk factors that will determine how and when the ATO will take action to recover administrative overpayments. The amendments add new paragraphs concerning for example reinforcing tax officers’…
AUSTRAC has released guidelines governing its release of bulk information to the ATO and designated agencies. This guidance is to assist the AUSTRAC Chief Executive Officer in considering requests for the disclosure of bulk AUSTRAC information from: the Commissioner of Taxation or any taxation officer (ATO official); or an appropriately authorised official of a designated…
The ATO has advised tax agents that from 1 July 2013, individual returns will require bank details to be entered when lodging through ELS, where a refund is expected. It says this will enable electronic funds transfer (EFT) to be used, which is the fastest and most secure way to receive tax refunds. The ATO says details…
The ATO has released its Real-time compliance engagement approach for higher consequence taxpayers in the large market. It says the information outlines the policy behind its approach to higher consequence taxpayers. According to the ATO, it uses pre-lodgment compliance reviews (PCRs) for all higher consequence taxpayers that do not have an annual compliance arrangement. It…
The ATO has released the third edition of its Your case matters publication which sets out key data and analysis regarding Australia’s tax and superannuation litigation from 1 July 2012 to 31 December 2012. Highlights from the data include (for the period): 350,000 audits and review activities were completed resulting in just over 226,000 amended assessments; 16,500 objections were…
Under the R&D tax incentive, an R&D tax offset for expenditure incurred to an associate can only be claimed when that amount is paid. For taxpayers who incurred an R&D amount to an associate but did not pay it in 2012, the ATO says they can either claim a deduction under the normal income tax…
*Refunding excess GST – further draft of Division 36 released for retrospective effect back to 17 Aug 2012 [43] The Assistant Treasurer on Tue 26.2.2013, released draft legislation for a second round of public consultation regarding the circumstances where the Commissioner will refund an overpayment of GST. The draft legislation seeks to clarify the circumstances…
The ATO on Fri 15.2.2013, issued a Decision Impact Statement on the AAT’s decision in AAT Case [2012] AATA 847, Re Bocaz and FCT. In that decision, the Commissioner disallowed the Taxpayer’s claims for deductions in relation to 2 rental properties alleging that they were non-commercial relationships. But the AAT set aside the decision of…
The ATO on Fri 22.2.2013, issued a Decision Impact Statement on the Full Federal Court’s decision in FCT v Citigroup Pty Ltd (2011) 83 ATR 305. In that decision, the Full Federal Court unanimously confirmed that Pt IVA applied to cancel foreign tax credits of some $23m arising from a transaction that generated a significant…