In a decision handed down on Wed 20.6.2012, the Full Federal Court has dismissed a taxpayer’s appeal from an AAT decision that had denied the taxpayer’s claim that supplies made under amended pre-GST leases during the relevant periods were GST-free pursuant to s 13 of the GST Transition Act. The taxpayer had claimed refunds totalling…
In a decision handed down on 7.6.2012, the Full Federal Court allowed the Commissioner’s appeal and set aside the decision in AAT Case [2011] AATA 479, Re Greenhatch and FCT and held that the assessable income of a beneficiary presently entitled to a discounted capital gain made by the trust was only the discounted proportion…
Fortescue Metals Group Ltd announced that on Fri 22.6.2012, it had lodged a challenge in the High Court against the Federal Government’s Minerals Resource Rent Tax (MRRT) on constitutional grounds. Fortescue Chief Executive Officer: Nev Power said Fortescue had taken legal advice and was challenging the tax on the grounds that the MRRT: discriminates between…
The High Court on Fri 8.6.2012, refused the taxpayer special leave to appeal against the Qld Court of Appeal decision in Hart v Commonwealth Director of Public Prosecutions [2011] QCA 351. The Court of Appeal had dismissed an appeal by an accountant against a 30 November 2010 decision of the District Court of Qld which…
The High Court, on Fri 8.6.2012, refused the Commissioner special leave to appeal against the Full Federal Court decision in FCT v Byrne Hotels Qld Pty Ltd [2011] FCAFC 127. The Full Federal Court decision had by majority confirmed that for the purposes of accessing the CGT small business concessions, a real estate agent commission…
The Business Tax Working Group has released a Consultation Guide to provide stakeholders with an understanding of how the Working Group plans to involve the community in its consideration of business tax reform. The Government has asked the Working Group to focus its attention on how a revenue neutral cut to the company tax rate…
The Minister for Financial Services has announced the long-awaited replacement for the accountants’ exemption re providing superannuation and financial advice. On Saturday, 23 June 2012, the Minister announced a new limited Australian Financial Services Licence (AFSL) for accountants. In addition to being able to advise on self-managed superannuation funds and superannuation generally, licence holders will…
As a result of the release of Reserve Bank data, the benchmark interest rate for the 2012-13 income year, for the purposes of the deemed dividend provisions of Div 7A of the ITAA 1936, can now be calculated to be 7.05% (down from 7.80% for 2011-12). The benchmark interest rate is the same as the…
The Government announced in the 2012-13 Budget that it would make several changes to support the effective operation of the 2011-12 Budget measure providing greater consistency in the application of the scrip-for-scrip roll-over and small business concessions. In particular, the 2012-13 Budget announcement is designed to ensure that the provisions concerning absolutely entitled beneficiaries, security…
The Prime Minister has ruled out abolishing negative gearing. Speaking on the ABC’s Q&A Program on Mon 11.6.2012, she said the Government did not agree with the Henry Tax Review and that abolition of negative gearing “would cause distortions to the property market that we didn’t want to see”. [LTN 111, 12/6]