Monthly Archives: February 2017

Superannuation Data and Payment Standard for contributions and rollovers (under ‘SuperStream’) registered by ATO [54]

The ATO on Fri 11.1.2013, registered Superannuation Data and Payment Standards 2012. The purpose of the Standard is to facilitate effective e-commerce as part of the SuperStream reforms in relation to core transactions such as contributions and rollovers across the superannuation industry. The Standard specifies the minimum requirements for dealing with payments and information relating…

*Draft repeal of the SIS Regs protecting members with small balances from excessive fees (as inconsistent with MySuper principles of equal fees) [55]

The Government on Thur 17.1.2013, issued for comment draft amending regulations proposing to remove the member protection standards from the SIS regs. The Government said the changes will implement a recommendation of the Super System Review. It said that MySuper fees rules, which are to commence on 1 July 2013, will help protect members from unnecessary fees…

*Super fund investment earnings to pay pensions on death of member to remain tax-exempt – draft regulation released [56]

The Minister for Financial Services on Tue 29.1.2013 released a draft regulation to give effect to the Government’s 2012-13 MYEFO announcement to provide tax certainty to the beneficiaries of deceased estates. Investment earnings derived by super funds from assets supporting pensions are exempt from tax. A draft ruling issued by the ATO in 2011 [Draft…

Re Penrowse Pty Ltd and FCT – taxpayer paid employee truck owners 80% for trucks and 20% for wages, but AAT upheld SGC on 100% [58]

The AAT has held that a taxpayer had underpaid superannuation in relation to delivery drivers it employed and remitted the matter back to the Commissioner for reassessment. The Commissioner had issued superannuation guarantee charge (SGC) assessments to the taxpayer following an audit. The assessments covered 5 quarters, commencing 1 April 2009 and concluding the quarter ending 30 June 2010.…

Re Verschuer and FCT – Late super contribution via clearing account hit with 93% tax [59]

An employer contribution via a superannuation clearing account has resulted in a $69,665 excess superannuation contributions tax liability for a taxpayer, representing an effective tax rate of 93%. On 27 June 2008, the taxpayer’s employer paid a “top-up” superannuation contribution to a clearing account operated by a superannuation fund (Colonial First State). However, the employer contribution of…

Re Bayconnection Property Developments Pty Ltd and Ors and FCT – Input tax credits denied: not carrying on an enterprise – maximum penalties upheld too [51]

The AAT has held that 5 company taxpayers were not carrying on an ‘enterprise’ and were therefore not entitled to input tax credit (ITC) claims for tax periods ranging from February 2005 to January 2009. It also affirmed the 75% penalty imposed with a 20% uplift for the relevant periods. The taxpayers were all owned by one or more…

Re Tom and FCT – GST refunds sought for misclassified directors’ fees, but claim denied because it was more than 4 year prior to notifying the ATO [50]

The AAT has held that a taxpayer’s notice to the Commissioner of his entitlement to GST refunds for the periods 30 September 2005 to 31 December 2006 was lodged outside of the relevant 4-year period and therefore he was not entitled to the refunds claimed. The taxpayer carried on a retailing upholstery business. For the relevant periods, he lodged…

Re Yacoub and FCT – GST: taxpayer’s appeal dismissed re earlier deregistration date for applicable entity [49]

In a decision dated 29 June 2012 (but released by the AAT on 11 January 2013), the AAT has dismissed an appeal by taxpayers concerning the Commissioner’s decision regarding the date of GST deregistration of an entity operated by the taxpayers. The facts are the same as those in Yacoub v FCT [2012] FCA 678. The matter broadly concerned…

Re Dandenong Motors Unit Trust and FCT – No GST refunds for net negative amounts for car dealership [48]

The AAT has dismissed a taxpayer’s appeal and held that the Commissioner was correct to deny it GST refunds for net negative amounts. Between 1987 and June 2003, the taxpayer conducted a car dealership. As a part of its business, it received hold-back payments made by parties (manufacturers or importers of motor vehicles) from whom it bought…

*High Court gives Commissioner leave to appeal in Unit Trend Services Pty Ltd v FCT – where the FFC split on whether GAAP applied to pre 16 March 2005 choices under the Margin Scheme [47]

The High Court has referred to an enlarged bench of the Court the Commissioner’s application for special leave to appeal against the decision of the Full Federal Court in Unit Trend Services Pty Ltd v FCT [2012] FCAFC 112. The appeal concerns the application of the GST anti-avoidance provisions in Div 165 of the GST Act.…