Monthly Archives: February 2017

PS LA 2010/2 withdrawn – Commissioner no longer had the power to disqualify SMSF auditors or refer them to their professional organisation [70]

The Tax Office withdrew Law Administration Practice Statement PS LA 2010/2 (SMSFs – approved auditors – disqualification and/or referral to a professional association) on 13 February 2013. It was withdrawn because effective 31 January 2013, the Commissioner no longer has the power to disqualify approved auditors of SMSFs, or refer same to their professional association. PS LA 2010/2, originally…

Total super assets reached $1.51 trillion at December 2012 [71]

APRA Thur 21.2.2013, released its December 2012 Quarterly Superannuation Performance publication. Total estimated assets, which include the assets of self-managed super funds and the balance of life office statutory funds, rose by id=”mce_marker”92.2bn (14.6%) to id=”mce_marker”.51 trillion over the 12 months to 31 December 2012, taking into account an increase of $47.1bn (3.2%) in total assets over the December quarter. Over the December quarter,…

*Changes to SGC rate and My Super – Survey shows many employers don’t have a plan yet [72]

A significant number of Australian employers are yet to fully assess the impact of the upcoming Stronger Super reforms on their operations, and more than half don’t have a plan in place to ensure compliance, a new survey conducted by Aon Hewitt has revealed. This is despite the fact that, for many organisations, the new…

Re Dowling and FCT – Excess super contributions tax case: taxpayer has partial win [55]

The AAT has set aside the Commissioner’s decision and ordered that a non-concessional superannuation contribution for the 2009 year, and the related penalty that was assessed, be disregarded and not be taken into account in consideration of the liability for excess non-concessional contributions tax for the subsequent transaction in 2010. Prior to 2008, a husband…

*HC Legal Pty Ltd v DCT – GST refund on fixed price legal services for 10 years reversed and Statutory Demand issued – Application to set it aside failed [44]

The Federal Court has dismissed a taxpayer’s application to set aside a statutory demand for payment of a GST debt and associated penalties of some $6.9m in relation to a purported capital purchase which occurred on 31 December 2011. The taxpayer is a small law firm which in 2011 executed an agreement with a third party to…

*Cyonara Snowfox Pty Ltd v FCT – taxpayer has applied for special leave to appeal to appeal to the High Court in GST case about margin scheme and going concern [45]

The taxpayer has applied for special leave to appeal to the High Court against the decision of the Full Federal Court in Cyonara Snowfox Pty Ltd v FCT [2012] FCAFC 177. The Full Federal Court had dismissed the taxpayer’s appeal against an earlier AAT decision, which had affirmed a GST assessment for particular periods in…

*MBI Properties Pty Ltd v FCT – GST: increasing adjustment for acquisition of going concern [46]

The Federal Court has held that an increasing adjustment arose under s 135-5 of the GST Act in relation to the acquisition of 3 apartments by the taxpayer as a GST-free supply of a going concern. The taxpayer acquired 3 apartments, which were subject to certain leases and used [by the lessee] as a part of…

Re Bayconnection Property Developments Pty Ltd and Ors and FCT – taxpayers appeal ‘no enterprise’ and 75% penalties decision of AAT [47]

The taxpayers have lodged notices of appeal to the Federal Court against the decision in AAT Case [2013] AATA 40, Re Bayconnection Property Developments Pty Ltd and Ors and FCT. The AAT had held that 5 company taxpayers were not carrying on enterprise and were therefore not entitled to input tax credits claims for tax…

*Duoedge Pty Ltd v Leong & OCMC Pty Ltd – Rectification of contract re GST refund denied [48]

The Supreme Court of Victoria has allowed an appeal from a Magistrate’s decision concerning rectification of a contract for the sale of a property concerning the GST component of the sale price. In September 2009, Mr Leong purchased a property from Duoedge Pty Ltd for a price specified in the contract as “$916,000 GST inclusive”. Mr Leong…

*Central Equity Limited & Anor v FCT – taxpayer has discontinued appeal leaving GST payable on pre-1 July 2000 contracts settled after that date [49]

The taxpayer has discontinued its appeal to the Full Federal Court against the decision of Gordon J in Central Equity Limited & Anor v FCT (2011) 82 ATR 550. In that decision, which now stands, Gordon J held that a property developer was liable for GST on apartments sold under enforceable contracts that were signed before 1 July 2000…