ASFA on Tue 18.9.2012, released its submission to Treasury on the draft legislation proposing to amend the GST Act and the TAA relating to refunding of excess GST. ASFA agreed the law surrounding GST refunds required clarification, but considered the draft legislation in its current form was “overly restrictive and significantly reduces the ability of…
The Government’s Taskforce on Low Value Parcel Processing on Thur 6.9.2012, released its report into the concerns surrounding the current GST and other revenue arrangements of imported goods valued at or below $1,000. The final report stated that potential solutions warranting future consideration were: the collection of duty and/or GST by financial intermediaries; and the…
The A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No 4) was Mon 3.9.2012, registered on the Federal Register of Legislative Instruments. It amends the GST regs to expand the definition of “credit union” to also include those that were listed by APRA as a credit union at 1 July 2011, and…
The Government on Fri 14.9.2012, announced the appointment of Mr Geoff Leeper as a full-time ATO Second Commissioner for a 7-year period. Mr Leeper starts his appointment early next month and replaces Mr David Butler who had resigned from his position earlier this year. Mr Leeper is currently Deputy Secretary at the Department of Regional…
The Commissioner has announced that the ATO had successfully prosecuted around 2,000 individuals and companies for fraud, tax and super offences in the 2011-12 financial year. Of the individuals and companies prosecuted, Mr D’Ascenzo said: 39 individuals were prosecuted for offences including attempting to hide income and assets overseas, and individuals using stolen identities to…
The Tax Office has advised that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the 2nd quarter of the 2012-13 financial year (ie 1 October 2012 – 31 December 2012) are as follows: GIC annual rate is 10.62%; GIC daily compounding rate is 0.02901639%; SIC annual rate is 6.62%; SIC daily…
The ATO Wed 19.9.2012 issued Class Ruling CR 2012/80 (Selective Capital Reduction: Mesbon China Nylon Limited). It applies to shareholders of Mesbon China Nylon Limited (Mesbon) who participate in the selective capital reduction as described in the Ruling. According to the Ruling, the selective capital reduction will not be treated as a buy-back for the…
The ATO on Wed 5.9.2012, released the following Class Rulings: : Talent2 International Limited Scheme of Arrangement and payment of CR 2012/66Proposed Special Dividend. It applies from 1 July 2012 to 30 June 2013. Among other things, the Ruling states that a resident shareholder who receives a special dividend is required to include the dividend…
This Draft TD, issued Wed 19.9.2012, concerns a receiver who disposes of a CGT asset as the agent for a debtor and any resultant obligations under s 254 of the ITAA 1936. In particular, the Draft TD deals with the question of whether the receiver has an obligation under s 254 to retain from the…
This Draft TD, issued Wed 19.9.2012, concerns s 254 of the ITAA 1936 relating to agents and trustees. In particular, the Draft TD deals with the question of whether income tax must have been assessed before an agent or trustee has an obligation under s 254 to retain sufficient money to pay tax, which is…