The Victorian Government has successfully challenged an ATO decision to impose GST on interment, Victorian Minister for Health David Davis has announced. Mr Davis said that last year, the ATO issued a ruling [Class Ruling CR 2013/41] in relation to GST on fees imposed by NSW councils, including cemetery fees. Following this, he said the…
This Determination, issued on Wed 5.2.2014, states that where real property is acquired following the exercise of a call option, the call option fee does not form part of the “consideration for the acquisition” for the purposes of s 75-10(2) of the GST Act [which states that GST can be imposed on the ‘margin’ land is…
It is understood that the Commissioner has discontinued his appeal to the Federal Court against the decision in AAT Case [2013] AATA 891, Re Swanbat Pty Ltd and FCT. The AAT had set aside the Commissioner’s amended assessment in relation to a BAS for the period 1 April 2008 to 30 June 2008 and held that the taxpayer’s net…
The AAT has mostly affirmed the Commissioner’s decision to impose on a taxpayer an administrative penalty for “recklessness” in relation to claims for input tax credits made in 9 amended BASs for the September 2008 to December 2010 quarters. Before the Tribunal, the taxpayer sought remission of id=”mce_marker”5,535 in penalties. The Commissioner had refused the majority of the taxpayer’s…
On 6 November 2013, the Government announced its intention to proceed with the previously announced proposal to restrict GST refunds with some amendments. The proposal for restrictions on GST refunds had been announced by the previous Government in August 2012 and detailed in the 2012-13 MYEFO. Following consultation on draft legislation, the proposal was introduced into the House of…
The Tax Office is writing to tax agents who still lodge tax returns by paper to encourage them to lodge electronically. The ATO says that from 2014, lodgment program concessional due dates will only be available to lodgments received electronically. These changes will apply from: 2013-14 income tax returns lodged after 1 July 2014; 2013-14 FBT returns…
The ATO on Thur 20.2.2014, issued Practice Statement PS LA 2014/1 to provide guidance to ATO personnel on how the Commissioner administers penalties for failure to comply with Ancillary Fund Guidelines. It also provides guidance on when directors of a corporate trustee may have a defence to the administrative penalties and when the Commissioner may remit such penalties. Broadly,…
The ATO on Fri 7.2.2014, released ATO ID 2014/1 (Discharge of debt arising from the provision of services – changing from cash to accruals accounting). The ID deals with the following: Where the method of accounting changes from cash to accruals basis in an income year, does s 118-20 of the ITAA 1997 apply to reduce…
The ATO on Wed 26.2.2014, issued the following Product Rulings: PR 2014/2: Challenger Care Annuity. It applies prospectively from 1 July 2013 to entities that enter into the scheme from 1 July 2013 until 30 June 2016. Broadly, the Ruling states that regular payments made to the holder of the annuity are assessable income under s 27H(1) to the extent that the…
The ATO on Wed 12.2.2014, released the following Class Rulings: CR 2014/16: Downer EDI Limited Long Term Incentive Plan. It applies from 1 July 2013. Broadly, the Ruling states that the rights acquired under the plan are ESS interests for the purposes of s 83A-340 of the ITAA 1997 and that no amount will be included in the…