Monthly Archives: March 2017

Sandini Pty Ltd v FCT CGT: s126-15 breakdown of marriage CGT rollover available for transfer of mining shares from a trust controlled by one former spouse to a trust controlled by the other former spouse under Court order

The Federal court found, in an application for declaratory relief, that breakdown of marriage rollover relief applied to a transfer of $2.5m of mining shares, from a trust he controlled by one spouse, to a corporate trustee of a trust controlled by his former spouse. The transfer was made pursuant to a family court order,…

Vic Land Tax – Lotus Projects Pty Ltd v Commissioner of State Revenue (Vic) Part of development used as golf course not exempt from land tax – reasons bear examination

Vic Land Tax – Lotus Projects Pty Ltd v Commissioner of State Revenue (Vic) Part of development used as golf course not exempt from land tax – reasons bear examination On 20 March 2017, the Victorian Supreme Court held that the part of a residential development, used as a golf course, was not eligible for…

Trustee for the Whitby Trust and FCT – $2m price of option not added to the $26m paid for the purposes of the ‘margin scheme’ – not ‘consideration for [the] acquisition’ of the real property

A property developer has been unsuccessful in arguing that a fee paid for an option to purchase real property formed part of the acquisition cost of the property. The taxpayer entered into an agreement with the vendor to purchase the property for $28m, which included a non-refundable option fee of $2m. The option was exercised…

GST-free child care for ‘long day care’ and ‘in-home care’ continues to be GST-free after previous determinations by the Minister replaced by new s38-150(e) determination

The GST-free Supply (Long Day Care and In-home Care) Determination 2017 was registered on Thur 23.3.2017, to ensure that supplies of child care will remain GST-free where funding is provided by the Commonwealth for in-home care or long day care services. This determination is made under s38-150(e) of the GST Act, which allows the Child…

Re Walker and FCT – Deductions for travel, accommodation, food not allowed as taxpayer not an itinerant worker

The AAT has affirmed the Commissioner’s decision to deny deductions for over $25,000 for meals, groceries, accommodation, motor vehicle, caravan, mobile phone and internet services, incurred in the 2014 and 2015 income years. Normally, home to work travel, travel between two different employments, and other private expenses are not deductible, on authority of the High…

Tech Mahindra Limited v FCT – High Court refused taxpayer’s application to appeal – Full Federal Court decision stands that work performed from Indian PE was taxable in Australia as a ‘know-how’ based ‘royalty’

The High Court, sitting in Sydney, has refused the taxpayer’s application for special leave to appeal against the Full Federal Court decision in Tech Mahindra Limited v FCT [2016] FCAFC 130. The Full Federal Court decision, which now stands, dismissed the taxpayer’s appeal, effectively upholding the judgment of Perry J in September 2016 that a company resident in…

Diverted Profits Tax Bills pass Lower House and move to Senate – 40% tax on profits diverted by ‘significant global entities’ to jurisdiction with less than 80% of our tax rate – nasty dispute resolution features too

On Tuesday 21.3.2017, the Lower House passed the Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017 and the Diverted Profits Tax Bill 2017. The Diverted Profits Tax Bill was passed without amendment but the Multinational Tax Avoidance Bill was amended to clarify the interaction between the controlled foreign companies (CFC) rules in Pt X…

Tax Month – March 2017

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – March 2017 Developments – This is a collection of developments in Australian tax law and practice that occurred in March 2017 which aims to be relevant to tax practitioners.[i] Compiled By F John Morgan…