Monthly Archives: April 2017

Zappia v FCT – Taxpayer’s default assessments on unexplained $2 million receipt upheld – the taxpayer ‘did not even come close’ to discharging her onus of establishing what the correct taxable income should be

The Federal Court has dismissed a taxpayer’s appeal against default assessments that included $2 million that was received into a bank account held in the taxpayer’s name. The taxpayer’s husband is a property developer. On 30 June 2010, the taxpayer received $2 million into a bank account maintained in her name. The $2 million was not included…

Ralston v Jurisich – Solicitors failed to advise client to get tax advice regarding a $1.3m share buy-back, which was deemed a dividend, when a voluntary liquidation would have been tax free – liable $608k for the tax

The NSW Court of Appeal has unanimously dismissed an appeal by a firm of solicitors against a District Court order that they pay damages to a client (Mrs Jurisich) equivalent to the amount of tax she was required to pay concerning a share buy-back plus interest, in addition to a proportion of the accounting fees incurred…

Tas: Taxation and Related Legislation (Miscellaneous Amendments) Bill 2017 – awaits Assent – facilitates info to ATO; harmonized motor vehicle allowance for payroll tax; abolish duty on instruments that don’t affect land, etc.

The Taxation and Related Legislation (Miscellaneous Amendments) Bill 2017 (Tas) has passed all stages without amendment and awaits Royal Assent. It amends the Duties Act 2001, Land Tax Act 2000, Land Titles Act 1980, Local Government Act 1993, Payroll Tax Act 2008, Taxation Administration Act 1997, Taxation Administration Regulations 2010 and the Valuation of Land Act 2001. Amendments include: facilitate the collection of information required to…

Qld: Remission of unpaid tax interest – Ruling TAA060.1.6 released – applications must be in writing and relevant factors include: cause for delay, diligence in complying, beyond taxpayer’s control, Commissioner’s fault, etc.

The Qld Treasury has released Ruling TAA060.1.6 dealing with Remission of unpaid tax interest. It provides guidance on matters that may be relevant when the Commissioner decides whether or not to exercise the discretion to remit unpaid tax interest. Unpaid tax interest applies whenever there is a delay in the payment of tax. The delays may result from: (i) failure to…

Peter Sleiman Investments Pty Ltd as trustee for the Sleiman Family Trust v DCT – Winding up order for large tax debts confirmed, but stay continued

The NSW Court of Appeal has unanimously ordered the continuation of a stay of a winding up in relation to outstanding tax debts. In June 2013, income tax assessments for the 2008, 2009 and 2010 income years totalling just over $7.1 million were issued to Peter Sleiman Investments Pty Ltd (PS Investments), in its capacity as trustee.…

UN updates transfer pricing manual, including: additional chapters on services, intangibles; taking account of the OECD/G20 BEPS project; revised guidance on comparability analysis; revised guidance on documentation

The UN Committee of Experts on International Cooperation in Tax Matters (UN Committee), during recent meetings, released its revised and updated 2017 United Nations Practical Manual on Transfer Pricing for Developing Countries. Main items of the 2017 update included: additional chapters on services, intangibles; taking account of the OECD/G20 BEPS project; revised guidance on comparability analysis; revised…

Tax Practioners Board – Advice on “who needs to register as a tax (financial) adviser?”

On 19 April 2017, the TPB issued the following guidance on registration requirements. All Australian financial services (AFS) licensees and their representatives that provide tax (financial) advice services for a fee or other reward must be registered with the Tax Practitioners Board (TPB). If you advise your clients about the tax consequences of the financial advice…

CEO update from latest Board of Taxation meeting – voluntary tax transparency disclosure has 38 reporting and a total of 76 signed up; 2017 work program includes the ‘black economy project and the ‘sharing economy’

On 24 March 2017 the Board of Taxation held its second meeting for 2017. At the Board’s meeting, we discussed the following Some additional detail on the progress of the Board’s work is set out below. Tax Transparency Code The Board noted that 76 organisations (including private and foreign companies) have now indicated their intention…

PR 2017/3 – Interest linked to CPI remains non-deductible if used to fund the purchase of a home loan (which is obvious) but changes in total rate of interest on refinancing is not assessable or deductible

On Wed 19.4.2017, the ATO released Product Ruling PR 2017/3 concerning the income tax consequences for a borrower being charged an “Indexed Rate” of interest under a home loan. The ATO says the interest incurred by the borrower at the Base Rate under a home loan used to fund the acquisition of the borrower’s principal place of…

CR 2017/26-28 – Income tax: scrip-for-scrip roll-over; variation of class units rights; early retirement scheme

On Wed 19.4.2017, the ATO released the following Class Rulings: Class Ruling CR 2017/26– Income tax: scrip-for-scrip roll-over: acquisition of Centuria Metropolitan REIT No. 2 (CMR2) by Centuria Metropolitan REIT No. 1 (CMR1). The ATO says that, subject to certain conditions, a CMR2 Unitholder who makes a capital gain from the disposal of a CMR2 unit…