The AAT has upheld a non-compliance notice issued to a self-managed superannuation fund (SMSF) for regulatory breaches in respect of loans made to a related company. During 2005 to 2008, the SMSF accepted contributions and roll-overs in respect of a tax agent, his wife and 2 daughters. This money was then lent to a company…
The AAT has affirmed that a SMSF was a non-complying fund for the year ended 30 June 2005 and that a deduction was not available for the misappropriation of funds by a trustee. Further, it affirmed that the base penalty of 75% of the shortfall was appropriate given the circumstances of the breach. The taxpayer…
In the 2011-12 Federal Budget, the Government announced that it would amend the ITAA 1997 to remove access to the trading stock exception to the CGT primary code rule for certain assets (primarily shares, units in a trust and land) owned by a complying superannuation entity. The Government today [Fri 13.1.2012] released draft legislation and…
The Treasury has released draft legislation and explanatory material on the Government’s proposal to refund certain excess concessional superannuation contributions announced in the 2011-12 Budget. The draft is available on the Treasury website. Under the proposal, eligible individuals would be given a once-only option to have excess concessional contributions up to $10,000 (not indexed) refunded…
The ATO on Mon 9.1.2012, released a Decision Impact Statement on the Federal Court’s decisions in Aurora Developments Pty Ltd v FCT [2011] FCA 232 (GST and going concern) and Aurora Developments Pty Ltd v FCT (No 2) [2011] FCA 1090 (penalties for omission of GST amounts). The ATO says its view in GSTR 2002/5…
A taxpayer’s appeal to the Federal Court (in Centrebet Pty Ltd v FCT) concerning GST on monetary prizes paid to non-residents has been finalised and dismissed by consent. The ATO and the taxpayer agreed that the monetary prizes the taxpayer became liable to pay to non-resident entities on the outcome of gambling events during each…
The Assistant Treasurer has released draft regulations implementing the remaining 4 measures of proposed changes to the financial supply provisions of the GST law that were announced in the 2010-11 Federal Budget. The 4 measures are: simplifying the treatment of hire purchase transactions by making them fully taxable; expanding the range of expenses qualifying for…
The ATO has released the Reportable tax position (RTP) early disclosure form 2012 and accompanying instructions. For taxpayers required to lodge a reportable tax position schedule for 2012, the ATO says the early disclosure form enables them to disclose RTPs prior to lodgment of the schedule. For taxpayers completing the RTP early disclosure form, the…
The Tax Office on Wed 11.1.2012, issued this Draft Determination which deals with the issue of when income tax of a private company will be a “present legal obligation” for the purposes of the distributable surplus calculation under s 109Y(2) of Div 7A of Pt III of the ITAA 1936. It provides that if a…
This Ruling, issued on Wed 25.1.2012, states the Commissioner’s view regarding the tax treatment of retail premiums paid to non-participating shareholders in companies for amounts subscribed for shares. Broadly, these schemes involve a company granting rights to its existing shareholders that allow them to subscribe for new shares at an amount (“offer price”). For shareholders…