Monthly Archives: March 2017

*GST treatment of taxes, fees and charges: draft regs released, which extend the grandfathered operation of the last Determination until 30 June 2013 [G1]

The Assistant Treasurer on Wed 2.5.2012, released draft Regulations for public consultation specifying the GST treatment of certain Australian taxes, fees and charges. The draft regulations and explanatory material are on the Treasury website. The Regulations would provide that certain taxes, fees and charges will either be taxable or GST exempt, consistent with the principles…

2011-12 trust changes: interview with ATO senior tax counsel [R25]

In a recent interview, an ATO senior tax counsel outlined the ATO view on trusts and the changes implemented by the ATO for the 2012 income tax year. Some points of note from the interview include: Trustee resolutions – The ATO says the previous concessional practice of allowing trustees to make beneficiaries presently entitled to…

*ATO to write to tax agent clients about private health insurance rebate [R21]

Means testing the private health insurance rebate starts on 1 July this year. The ATO says that, from 21 May 2012, it will write directly to tax agent clients who may be affected by changes to the private health insurance rebate. The letter will provide information to assist those people determine whether their entitlement to…

Streamlined TaxPack to appear this year [R24]

The ATO has advised that, from 1 July 2012, TaxPack and TaxPack supplement will be replaced by 2 new print products – Individual tax return instructions and Individual tax return instructions supplement. The ATO says the replacement products have been streamlined to focus on the information that applies to the majority of paper lodgers. As…

ATO issues Default Assessment Guide – including warning procedure; calculation of the taxable income; and 75% penalties [R23]

The ATO has released a guide for tax professionals on default assessments for overdue tax returns. The guide outlines the process for the ATO in issuing default assessments including first issuing a default assessment warning letter (DAWL) and contact with the taxpayer or their tax agents. The ATO said the taxable income of the taxpayer…

ATO taxable payments reporting – factsheet for building and construction industry [R22]

The ATO has released the taxable payments reporting – building and construction industry factsheet for businesses in the building and construction industry subject to the reporting regime commencing from 1 July 2012. It says the businesses do not need to report payments in relation to the following: payments for materials only; any unpaid invoices as…

ATO releases a guide on who has to complete the ‘International dealings schedule’ in 2012 returns [R20]

The ATO has released a guide to the International dealings schedule (IDS) 2012. It says the IDS will form a part of the 2012 income tax return for certain taxpayers. The guide outlines the circumstances where a company, partnership or trust will need to complete the IDS. The ATO says the IDS needs to be…

*ATO reminds trustees to make resolutions by 30 June this year (no 2 month extension any more) and document specific entitlements by 30 June for franked dividends and 31 August for capital gains [R19]

The ATO has reminded taxpayers that from the 2011-12 income year, all trustees who make beneficiaries entitled to trust income by way of a resolution must do so by 30 June 2012. However, it says if the trust deed requires a resolution to be made at a date before 30 June 2012, then trustees should…

*1500 Tax prosecutions to date this year – 30 with jail terms and 5 under Project Wickenby [R18]

The Tax Commissioner says the ATO’s prosecution of more than 1,500 people for tax and superannuation offences sends a clear warning to taxpayers who offend, that they can expect to be caught. The Commissioner said the figures for year-to-date results to 31 March 2012 show the ATO successfully prosecuted 1,106 individuals and 400 companies for…

Company directors sentenced under Project Wickenby [R17]

The ATO advised on Tue 15.5.2012, that 3 company directors had been sentenced to a total of 9 years jail for tax fraud following joint investigations by the Australian Federal Police and the ATO under Project Wickenby. According to the Tax Office, one of the directors was convicted and sentenced to 4 years jail with…