The Federal Court has held that licensing payments by an Australian distributor to a Canadian software supplier were royalties under the Australia/Canada DTA. The taxpayer is the Australian distributor of working papers software that was developed by a Canadian resident entity. The taxpayer pays annual fees to the Canadian company under its licensing arrangements with…
The Federal Court has imposed civil penalties in relation to 2 mass-marketed managed investment schemes that were implemented in a way that was “materially different” from that described in ATO Product Rulings in contravention of s 290-50(2), Sch 1 of the TAA. Barossa Vines Ltd was the responsible entity of managed investment schemes conducting a viticultural business.…
The High Court has refused a taxpayer special leave to appeal from the Full Federal Court decision in FCT v Fabig [2013] FCAFC 99. That decision involved 2 taxpayers, Matthew Dickinson and Janina Fabig. In that case, the Court had allowed the Commissioner’s appeal and held that the AAT, at first instance, had erred in finding…
The High Court on Fri 14.2.2014, refused the taxpayer’s application for special leave to appeal against the Full Federal Court decision in SCCASP Holdings as trustee for the H&R Super Fund v FCT [2013] FCAFC 45. The Full Federal Court had dismissed the taxpayer’s appeal from the decision in SCCASP Holdings as trustee for the…
The High Court on Fri 14.2.2014, unanimously allowed a taxpayer’s appeal from a decision of the NSW Court of Criminal Appeal in Milne v R [2012] NSWCCA 24 which had upheld his conviction for money laundering under s 400.3(1) of the Criminal Code (Cth). The High Court said Mr Milne was the sole director and shareholder…
Allowing people to claim a tax deduction on financial advice will ensure better retirement outcomes and keep advice accessible and affordable, according to the Institute of Public Accountants (IPA). The Institute believes there is a strong case to support the tax deductibility for the costs associated with financial planning advice. “We understand the tight fiscal…
US Secretary of the Treasury Jack Lew announced at a press conference during the G20 summit in Sydney that the United States and Australia had completed a FATCA (US Foreign Account Tax Compliance Act) agreement “in substance, and we plan to sign it very soon”. Mr Lew said he was “pleased that the G20 is expected…
At the conclusion of the first G20 Finance Ministers and Central Bank Governors Meeting held in Sydney on Sun 23.2.2014, the Treasurer said they committed to implement policies to grow their collective GDP by more than 2% above the current trajectory over the next 5 years. He said that, realistically, “these policies could mean an…
Responding to a mandate from G20 leaders to reinforce action against tax avoidance and evasion and inject greater trust and fairness into the international tax system, the OECD on Thur 13.2.2014, unveiled a new single global standard for the automatic exchange of information between tax authorities worldwide. The standard calls on jurisdictions to obtain information…
On 6 November 2013, the Government announced its intention to proceed with the 2013-14 Budget proposal to improve tax compliance through third party reporting and data-matching. The proposal is designed to improve taxpayer compliance by enhancing the information reported to the ATO by a range of third parties through the introduction of new reporting regimes. It is…