The ATO has advised tax agents that from 1 July 2013, individual returns will require bank details to be entered when lodging through ELS, where a refund is expected. It says this will enable electronic funds transfer (EFT) to be used, which is the fastest and most secure way to receive tax refunds. The ATO says details…
The ATO has released its Real-time compliance engagement approach for higher consequence taxpayers in the large market. It says the information outlines the policy behind its approach to higher consequence taxpayers. According to the ATO, it uses pre-lodgment compliance reviews (PCRs) for all higher consequence taxpayers that do not have an annual compliance arrangement. It…
The ATO has released the third edition of its Your case matters publication which sets out key data and analysis regarding Australia’s tax and superannuation litigation from 1 July 2012 to 31 December 2012. Highlights from the data include (for the period): 350,000 audits and review activities were completed resulting in just over 226,000 amended assessments; 16,500 objections were…
Under the R&D tax incentive, an R&D tax offset for expenditure incurred to an associate can only be claimed when that amount is paid. For taxpayers who incurred an R&D amount to an associate but did not pay it in 2012, the ATO says they can either claim a deduction under the normal income tax…
*Refunding excess GST – further draft of Division 36 released for retrospective effect back to 17 Aug 2012 [43] The Assistant Treasurer on Tue 26.2.2013, released draft legislation for a second round of public consultation regarding the circumstances where the Commissioner will refund an overpayment of GST. The draft legislation seeks to clarify the circumstances…
The ATO on Fri 15.2.2013, issued a Decision Impact Statement on the AAT’s decision in AAT Case [2012] AATA 847, Re Bocaz and FCT. In that decision, the Commissioner disallowed the Taxpayer’s claims for deductions in relation to 2 rental properties alleging that they were non-commercial relationships. But the AAT set aside the decision of…
The ATO on Fri 22.2.2013, issued a Decision Impact Statement on the Full Federal Court’s decision in FCT v Citigroup Pty Ltd (2011) 83 ATR 305. In that decision, the Full Federal Court unanimously confirmed that Pt IVA applied to cancel foreign tax credits of some $23m arising from a transaction that generated a significant…
The ATO on Mon 25.2.2013, released a Decision Impact Statement on the Qld Supreme Court decision of McMurdo J in Hansen Yuncken Pty Ltd v Ian James Ericson trading as Flea’s Concreting & Anor [2012] QSC 51. In that decision, the Court held that a garnishee notice issued by the Commissioner under s 260-5 of the Taxation Administration…
The ATO has released for comment draft initial recommendations for changes it is proposing to make in Table B of Taxation Ruling TR 2012/2 (Effective lives of depreciating assets). Table B lists effective lives for various asset categories. The ATO proposes to withdraw effective life determinations for various assets in Table B (and not replace…
This Ruling, issued Wed 13.2.2013, sets out the Commissioner’s view on the way in which s 30-15 and Item 2.1.10 of the table in s 30-25(1) of the ITAA 1997 apply to individuals who make a gift or contribution to a public fund which purports to be a school building fund. In particular, the Ruling discusses factors…