The Australian Charities and Not-for-profits Commission (ACNC) says close to 80% of charities have successfully met their annual reporting obligations. However, the ACNC said charities with overdue 2014 Annual Information Statements needed to take urgent action to avoid penalties. The ACNC said it will soon start sending warning letters to charities that have not submitted…
Thomson Reuters has used the latest AWOTE details (ABS Catalogue no: 6302.0) to calculate the following superannuation rates and thresholds for 2015-16 in compliance with ss 960-265, 960-275 and 960-285 of the ITAA 1997. However, all figures should be confirmed against the Tax Office Website document, Key superannuation rates and thresholds. CONTRIBUTIONS CAPS: The general…
The Government has indicated that it will consult widely before responding to the Murray Financial System Inquiry recommendation to restore the prohibition on borrowing by superannuation funds. Speaking at the 2015 SMSF Association National Conference [on Fri 20.2.2015], the Assistant Treasurer, Josh Frydenberg, said that the Government will consult “with an open mind”. The overriding objective…
A decision was handed down on Friday. The issues in this matter concern the purported loan agreement between Hua Wang Bank Berhad (‘HWBB’) and the Applicants. The Commissioner alleged they were sham agreements. The taxpayers’ Australian super funds deposited $600k to HWBB as a purported investment which on-lent this money to the taxpayers to buy…
Treasury [on Wed 18.2.2015] released for comment exposure draft regulation and an accompanying draft explanatory statement, which propose to make changes to regulations to implement the Fairer Taxation of Excess Non-concessional Contributions reforms and correct minor technical errors in the regulations. The changes will allow individuals to withdraw superannuation contributions in excess of the non-concessional…
The federal government has announced in the 2014/15 Mid-Year Economic and Fiscal Outlook a number of proposed amendments to the superannuation guarantee charge (SGC) rules for late or short payment of superannuation contributions from 1 July 2016. These changes include: the earnings base for the SGC will be brought into line with the current earnings…
On 18 December 2014, the OECD invited comments from interested parties on discussion drafts of 2 new elements of the OECD International VAT/GST Guidelines. These discussion drafts related to: (i) the place of taxation of business-to-consumer supplies of services and intangibles (B2C Guidelines); and (ii) provisions to support the application of the Guidelines in practice (Supporting provisions). The…
A taxpayer has been unsuccessful before the AAT in a matter concerning its claim that it was carrying on an enterprise of land development for GST purposes and therefore entitled to input tax credits (ITCs) for claimed creditable acquisitions. The taxpayer was registered for GST in August 2010. It claimed it had purchased property in Victoria for…
The AAT has disallowed a taxpayer’s appeal against GST and s 167 default income tax assessments, although it set aside an administrative penalty for one of the years in question. [See fuller article under ‘Cases’ – ‘Administrative Appeals Tribunal’ above.] The Tribunal said the taxpayer’s case was “full of inconsistencies, contradictions, inadequate explanations and unsupported and…
In a test case decision handed down [on Thursday 19.2.2015], the Federal Court has dismissed a taxpayer’s appeal concerning its entitlement to input tax credits (ITCs) for certain acquisitions relating to mining accommodation in WA. The taxpayer, Rio Tinto Services Ltd, is the representative member for the Rio Tinto Ltd GST group, which includes Hamersley…