Monthly Archives: February 2017

*Transfer pricing report by IGoT released by Minister – ATO management of these issues criticised [74]

The Government on Mon 2.6.2014, released the Inspector-General of Taxation’s (IGT) report into the ATO’s management of transfer pricing matters. The report was presented to the Assistant Treasurer in December 2013. The review found that key causes of stakeholder concerns were inadequate succession planning and resource management. Mr Noroozi reported that experience specialist officers had left the…

ATO risk identification re high wealth individuals can be improved: ANAO [75]

The Australian National Audit Office’s Report No 35 assessing the effectiveness of the ATO’s activities to promote tax compliance by high wealth individuals (HWIs) was tabled in Parliament on Wed 4.6.2014. The ATO defines HWIs as Australian resident individuals who, together with their associates, effectively control an estimated net wealth of $30m or more. The…

Measuring effectiveness of ATO compliance activities can be improved: ANAO review [76]

The Australian National Audit Office (ANAO) on Thur 12.6.2014, released Audit Report No 39 Compliance Effectiveness Methodology. The review examined the application of the ATO’s Compliance Effectiveness Methodology (CEM) in evaluating the effectiveness of key compliance activities and in shaping the development of strategies to promote voluntary compliance. The review found the ATO applied generally…

ACNC repeal Bill should be passed on recommendation of Senate committee divided along party lines [72]

The Senate Economics Legislation Committee on Mon 16.6.2014, tabled its report on the Australian Charities and Not-for-profits Commission (Repeal) (No 1) Bill 2014. The Bill, which is still before the House of Reps, proposes to repeal the Australian Charities and Not-for-profits Commission Act 2012, thereby abolishing the Australian Charities and Not-for-profits Commission (the ACNC). The…

*ACNC reminders for charities – lodge their 2013 Annual Information Statement by 30.6.14 or risk removal from register and loss of tax exemption [73]

The Australian Charities and Not-for-profits Commission (ACNC) has reminded charities of the 30 June 2014 deadline for lodging their 2013 Annual Information Statement. The ACNC warned it is a legal requirement that all registered charities submit an annual statement. Details of how to lodge the 2013 Annual Information Statement can found at acnc.gov.au/2013AIS or contact the ACNC…

The Mining Tax repeal Act re-introduced [71]

The Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 [No 2], also re-introduced on Mon 23.6.2014, proposes to repeal the mining tax and make consequential amendments to other legislation, including the ITAA 1997 and the Taxation Administration Act 1953, required as a result of the repeal of the MRRT. These include repeal of:…

Fishermen joint venturers not ‘employees’ for super (SGC) purposes: ATO view on AAT case: Re Dominic B Fishing Pty Ltd and FCT [68]

The ATO on Thur 5.6.2014, issued a Decision Impact Statement on the decision in AAT Case [2014] AATA 205, Re Dominic B Fishing Pty Ltd and FCT. In that case, the AAT held that fishing crew members on a commercial fishing vessel operated by the taxpayer, were not “employees”, at common law, or under the…

Carbon Tax repeal Acts re-introduced [70]

The Government re-introduced a series of Bills in the House of Reps on Mon 23.6.2014, to repeal the carbon tax and the mining tax and related measures. The Bills had previously been defeated in the Senate. The carbon tax repeal Bills are: Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 [No 2]. Clean Energy (Income…

Re Advent 7 Pty Ltd and FCT – ITC claims denied as they were not substantiated [67]

The AAT has rejected a taxpayer’s appeal and upheld the Commissioner’s disallowance of its input tax credit (ITC) claims. The taxpayer’s main business activity was computer system design, although it also marketed licensed computer software. It accounted for GST on a cash basis. The Commissioner audited the taxpayer and reduced its ITC claims from $404,491…

*Re North Sydney Developments Pty Ltd and FCT – GST: taxpayer’s letter to the ATO was a sufficient s105-55 ‘stop the clock’ notification of ITC entitlement [66]

A taxpayer has been successful before the AAT in seeking orders to allow its claim for GST input tax credits, totalling $2.8m, and to set aside a private ruling issued by the Commissioner, which had refused its claim [to those credits]. The taxpayer claimed it was entitled to ITCs of $2.2m (relating to December 2005) and $600,000…