The AAT has held that a taxpayer was liable to GST in relation to the execution of a trust deed as it was a taxable supply under s 9-5 of the GST Act. The taxpayer was a trustee of a unit trust constituting a managed investment scheme and involved in an infrastructure project and in 2009…
The ATO has updated its Compliance in focus 2013-14 document to be current as at 19 December 2013 to include final 2012-13 results and 2013-14 plans. Key focus areas and activities for the ATO for 2013-14 include: Large business – income tax (including tax consolidation issues, CGT outcomes, complex structuring and scrutiny of financial arrangements) – the…
The ATO has on Thur 12.12.2013, gazetted a notice stating that it will request and collect data relating to credit and debit card sales of entities for the periods from 1 July 2012 to 30 June 2014 from various financial institutions, including Commonwealth Bank of Australia, St George Bank, Westpac Banking Corporation, Australia and New Zealand Banking Group Limited,…
The ATO has advised that it is currently contacting businesses in the building and construction industry by phone to test the levels of understanding of the requirements of the taxable payments system, and to assist businesses to comply with their annual reporting obligations. The ATO advises tax agents whose clients have been contacted to ensure…
The Australian Public Service Commission has released the findings of its “capability review” of the ATO highlighting opportunities for improvement. The review highlighted various strengths of the agency, but noted that the ATO needs to undergo “transformational change”. The Commission said the taxpayer community will demand greater access to improved services in a digital world,…
The ATO has released its updated list of matters currently under consultation. The list is divided into 3 sections: technical, compliance, and administration. Under the technical list of matters, the ATO lists the following matters as in progress, including: trusts and anti-avoidance rules, alienation of income through discretionary trust partners, and the application of new…
The Tax Office has advised that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the 3rd quarter of the 2013-14 financial year (ie 1 January 2013 to 31 March 2014) are as follows: GIC annual rate is 9.59%; GIC daily compounding rate is 0.02627397%; SIC annual rate is 5.59%; and SIC daily compounding rate is…
The ATO on Thur 19.12.2013, released Practice Statement Law Administration PS LA 2013/4 (GA) to set out the percentage of taxable fuel the Commissioner accepts as a fair and reasonable apportionment of the fuel used in a vehicle for powering the auxiliary equipment of the vehicle. In particular, the PS LA states that the Commissioner…
The ATO on Fri 6.12.2013, issued the following IDs: ATO ID 2013/65: Company tax losses: whether company can disregard concessional tracing rules that apply in relation to more than one stake as part of forming the necessary belief for the purposes of the “no detriment” rule; and ATO ID 2013/66: Company tax losses: can a…
The ATO on Wed 18.12.2013, released Product Ruling PR 2013/24 (Challenger Guaranteed Annuity (Liquid Lifetime)). It applies to entities that purchase an annuity as described in the Ruling from 1 July 2013 until 30 June 2016. Among other things, the Ruling states that regular payments made under the annuity are assessable income under s 27H(1) of the ITAA 1997 to…