Daily Archives: February 28, 2017

*Fortescue Metals Group Limited and Ors v The Commonwealth of Australia – High Court dismisses challenge to constitutional validity of the mining tax [18]

The High Court on Wed 7.8.2013 unanimously dismissed proceedings brought by Fortescue Metals Group Limited (“Fortescue”) challenging the constitutional validity of some provisions of the Minerals Resource Rent Tax Act 2012 and other related “imposition” Acts, which created and imposed a minerals resource rent tax (MRRT) with effect from 1 July 2012. The other related imposition Acts…

Incorporation of barristers’ practices: no tax advantage, says senior counsel [17]

The NSW Bar Association will hold a General Meeting on 17 September 2013 in which a motion will be moved expressing support for changes that would permit barristers, who choose to do so, to practise through single member, sole director companies. To assist members with voting on this motion, the Bar Council has released advice from 4…

*Section 23AG changes limiting tax concessions on residents’ foreign services income – Treasury post implementation review [16]

Treasury on Wed 14.8.2013, released the results of its post-implementation review of the changes to income tax exemption for foreign employment income from 1 July 2009. The changes limited the exemption under s 23AG of the ITAA 1936 in relation to income derived by Australian individual residents unless the income related to certain aid work, charitable work, and…

*Further changes to proposed new MIT regime: Assistant Treasurer [15]

The Assistant Treasurer David Bradbury, late Mon 5.8.2013, announced 2 further changes to the proposed new tax system for managed investment trusts (MITs) in response to issues raised by the MIT industry in the course of consultation. Mr Bradbury said the changes relate to the under or over attribution of net income that is in…

*Taxing of Employee Share Scheme shares for ‘start-up companies’: discussion paper released [14]

The Government on Fri 2.8.2013, released a discussion paper on the Administrative and taxing arrangements of employee share schemes (ESS) of start-up companies.  It outlines the current arrangements and canvasses possible options for changes to the ESS system. The review was originally announced by the Government on 12 June 2013 and aims to help address barriers facing…

Government’s Economic Statement: budget surplus in 2016-17; tax and super changes including deferring $2k deduction cap for self-education expenses [13]

The Government Fri 2.8.2013, released its Economic Statement (August 2013) ahead of the upcoming Federal election. The Government announced that it is “on track” to achieve a modest budget surplus of $4bn in 2016-17. With the forecast moderate slowdown in the economy, the Government said it has made the decision to allow the tax write-downs…

OECD reports on 13 jurisdictions re tax information exchange [12]

The OECD has advised that the Global Forum on Transparency and Exchange of Information for Tax Purposes has released peer review reports assessing the tax systems of 13 jurisdictions for information exchange. It said that later this year, most of these reviews will feed into the ratings assigned to 50 jurisdictions, backing G20 and Global…

Transfer pricing documentation and requirements for intangibles: OECD papers for consultation [11]

The OECD has released for comment a White Paper on Transfer Pricing Documentation. The OECD said the paper is intended to initiate an international discussion of ways in which compliance with transfer pricing documentation requirements can be made simpler and more straight-forward, while at the same time providing tax authorities with more focused and useful…

*Coalition’s paid parental leave scheme – details revealed [8]

The Coalition on Sun 18.8.2013, announced details of its paid parental leave scheme which is proposed to commence from 1 July 2015. The scheme proposes to provide mothers with 26 weeks of paid parental leave, at their actual wage or the national minimum wage (whichever is greater), plus superannuation [up to a cap of id=”mce_marker”50,000 pa]. Under…

Coalition budget ‘savings’ plan: loss-carry back, other business tax breaks to be removed [10]

The Coalition on Wed 28.8.2013, revealed details as to how it proposes to “get the Budget back under control”. The Coalition confirmed that it would “abolish the carbon tax and associated spending measures apart from the compensation to households in the form of lower taxes and fortnightly pension increases”. It also confirmed that it would…