Daily Archives: June 12, 2017

TD 2017/D2 – Commissioner proposes to rule that ‘dividend equivalent payments’ from a trustee of an ESS trust, to an employee beneficiary, out of s99A taxed dividends, can still be assessed as employment related ‘ordinary income’

TD 2017/D2 was released on Thur 8.6.2017 and in it, the Commissioner proposes to rule that so called ‘dividend equivalent payments’, paid from a trustee of a ’employee share scheme’, can be assessed, to an employee beneficiary, as ordinary income’ under s6-5 of the ITAA 1997. [Here an ’employee share scheme’ is assumed to be one,…

TD 2017/D1 – proposal to rule that the wider definition of ‘distributions’ (that catches nearly every transaction at ‘undervalue’) can apply to non-beneficiaries too – s272-60 of Sch 2F, ITAA 1936

TD 2017/D1 was released on Thur 8.6.2017 and says that a person who is not a beneficiary of the trust is capable of having a distribution made to them, for the purposes of s 272-60 of Sch 2F to the ITAA 1936. Trusts can be prevented from carrying forward tax losses, in certain circumstances, if it has ‘distributed…

TR 2017/D5 – Employee remuneration trusts (not Div 83A ’employee share schemes’) – tax effects for employers, trustees and employees

This Draft Ruling, was released on 8.6.2017 and sets out the Commissioner’s views on how the taxation laws apply to an employee remuneration trust (ERT) arrangement that operates outside the usual scheme for taxing employee share schemes, in Div 83A of the ITAA 1997. The Draft Ruling deals with the consequences for the employer in terms of when…

GSTR 2017/1 – ruling for overseas suppliers about when they can be satisfied that a recipient is an ‘Australian Consumer’ for the purposes of the supply being taxable under the ‘Netflix’ provisions

Under the GST “Netflix tax” rules, the supply of services, digital products or rights by an overseas-based supplier to an Australian consumer is connected with Australia and, therefore, potentially liable to GST (see s9-25(5)(d)&(7) of the GST Act). GSTR 2017/1 was issued on 7 June 2017 and explains how overseas suppliers can determine whether the recipient…

Qld – Duty – Ruling: DA228.1.1 – When the ‘corporate trustee duty’ deduction is available under s228 of the Duties Act (for ordinary transfer duty also paid)

The Qld Office of State Revenue has issued Ruling DA228.1.1 – Corporate trustee duty deduction – transfer duty for trust acquisition under s228 of the Duties Act 2001 (Qld). Chapter 3, Part 2 of the Duties Act 2001 imposes corporate trustee duty on the dutiable value of a relevant acquisition and s228 provides a deduction…

NSW – Land Tax – D W Tolson Management Pty Ltd v Chief Comr of State Revenue – land used to rotate cattle used on other properties to eat mushroom waste was a use ‘too remote’ for exemption under a dominant of mushroom propagation

The NSW Civil and Administrative Tribunal has found that a parcel of land used for grazing cattle was not exempt from land tax in the 2011 to 2015 land tax years under the “propagation for sale of mushrooms” category in s10AA(3)(f) of the Land Tax Management Act 1956 (NSW). Quite why land used for grazing…