Monthly Archives: April 2017

Country-by-Country reporting: ATO releases further detail on the ‘local file / master file’ detail and design

This guidance builds on the local file – high level design by providing an overview of the detailed design of the local file / master file. It reflects underlying IT specifications (contained in the XML schema) for software developers to use in business management software to enable generation of a valid XML file. We have developed…

DCT v Club Culture Pty Ltd – Company fails to obtain review of winding-up order over $124 million tax debt from the Commissioner denying R&D off-sets and imposing huge shortfall penalties and GIC

The Federal Court has dismissed an application, by a company, for review of a winding up order made against it concerning a $124.8 million tax debt (mainly administrative penalties), in respect of the 2012 to 2015 financial years. The statutory demand had its origins in claims made by the company for large R&D tax offsets…

Binqld Finances Pty Ltd (In Liq) v Tamarama Fresh Juices Australia Pty Limited; In the Matter of Binqld Finances Pty Ltd (In Liq) – FCT required to produce documents to Binetter interests – secrecy exception applied

In a previous case: BCI Finances Pty Limited (in liq) v Binetter (No 4) [2016] FCA 1351, the liquidators of several companies were successful in obtaining orders of the Federal Court, that certain directors of the companies breached their fiduciary duty as directors, by engaging the companies in a scheme to evade tax, which in turn, resulted…

GST Legislative Instruments registered varying Attribution Rules; tax invoice requirements; recipient created tax invoices and cash basis determination

The following GST legislative instruments were registered on the Federal Register of Legislation on Wed 12.4.2017 & Thurs 13.4.2017: GST: Particular Attribution Rules for Banknote and Coin-operated Machines and Similar Devices Determination 2017 GST: Waiver of Requirement to hold a Tax Invoice Determination 2017 – Members of MasterCard International and Visa International – Bank Interchange…

ATO 2014/15 Taxation Statistics released – highest earning occupations & postcodes; highest donations; breakdowns by taxpayer type and tax type; compliance costs and industry benchmarks

The ATO has released the 2014-15 Taxation Statistics, revealing data on Australia’s most charitable individuals, highest earners and the richest postcodes. The latest report shows that with an average taxable income of $189,293, the postcode with the highest average taxable income was 2027, which includes the Sydney suburbs of Darling Point, Edgecliff, HMAS Rushcutters and…

Retrospective franking measure announced in last years MYEFO – ATO reminds taxpayers that distributions funded by capital raisings, outside the normal dividend cycle, from 19.12.16 can’t be franked

The ATO has reminded taxpayers that the Government announced a franking measure in last years Mid-Year Economic and Fiscal Outlook, which was to have retrospective effect back to the date of the announcement: 12 noon, 19 December 2016. The substance of the announcement was that it would introduce a specific measure to prevent a company…

CRP 2017/D1 –Commissioner’s remedial power – amending the Foreign Resident CGT withholding regime so vendors get the benefit of withholding credits in the year the CGT is payable – for sales that straddle year end

On Friday 7 April 2017, the Commissioner of Taxation issued a draft determination: the Taxation Administration (Remedial Power-Foreign Resident Capital Gains Withholding Tax) Determination 2017. This is a draft of the first determination under the Commissioner’s power, in s370-5 of Sch 1 to the TAA (TAA1) to remedy defects in the taxation law by making such a…

Supplies of ‘child-care’ are GST-free, despite not being approved under family assistance legislation – by legislative determination made by the Minister (under s38–150)

On 5.4.17, the Minister for Education and Training registered a legislative instrument: the GST-free Supply (Child Care) Determination 2017, to ensure that supplies of child-care remain GST-free. As a result of the introduction of the child care subsidy, new s38-150 of the GST Act ensures that, in limited cases where child care is provided by…

Foreign resident capital gains withholding: legislative instrument reduces withholding to nil for tax exempt vendors

On 7.4.17, a Deputy Commissioner registered a legislative instrument: the PAYG Withholding variation for foreign resident capital gains withholding payments – income tax exempt entities to vary (under s14-235(5) of the TAA) the CGT, PAYG withholding obligations, down to nil, for vendors who are tax exempt. This is for an entity that provides the purchaser:…

NSW: payroll tax, land tax, duty – Omnibus Bill awaits Assent – duty exemption for transfer to SMSF nominee (limited recourse financing); to new trustee and to SMSF member (primary production land)

The State Revenue Legislation Amendment Bill 2017 (NSW) was passed by the NSW Legislative Council without amendment on 4 April 2017 and received Royal Assent on 11 April 2017 as Act No 11 of 2017. It is an omnibus-style amendment Bill that makes a range of amendments to the Duties Act 1997, Land Tax Management Act 1956 and the Payroll Tax Act 2007. Among other things:…