Daily Archives: August 10, 2017

ASIC disqualifies SMSF auditor for breaches of independence standards for auditing the SMSF of a ‘close family member’ and also for breach of audit evidence standards

On 10.8.17, ASIC announced that it had disqualified Mr R of New South Wales from being an approved self-managed superannuation fund (SMSF) auditor for auditing the SMSF of a close family member. ASIC determined that Mr R had breached fundamental independence and audit requirements. Given the nature of these breaches, it was considered appropriate to disqualify…

Treasurer acknowledges New Zealand’s measures to combat cross-border avoidance of local tax and gives figures for tax boosts from its international measures

On 10.8.17, the Treasurer issued a press release welcoming New Zealand’s decision to join Australia in tackling multinational tax avoidance. He said: Australia is a strong advocate for all jurisdictions to adopt these measures. New Zealand will take action against multinationals that use artificial arrangements to avoid having a taxable presence in New Zealand. In addition to…

PR 2017/9 – OnePath Life – OneCare Policy – Life Cover, Total and Permanent Disability Cover and/or Trauma Cover monthly benefits are not assessable and there is no CGT on payment either

On Wed 9.8.2017, the ATO issued Product Ruling PR 2017/9 (OnePath Life – OneCare Policy – Life Cover, Total and Permanent Disability Cover and/or Trauma Cover). It provides that: the monthly payment of insurance benefits in accordance with the “instalment benefit payment type” is not assessable income of the recipient (the policy owner or a nominated…

Treasury Laws Amendment (2017 Enterprise Incentives No 2) Bill 2017 – Senate Committee recommends passing Bill giving directors an Insolvency safe harbour for restructuring outside formal administration and outlawing ‘ipso facto’ clauses

The report of the Senate Economics Legislation Committee on the Treasury Laws Amendment (2017 Enterprise Incentives No 2) Bill 2017 was tabled on Tue 8.8.2017. The Committee recommended the Bill be passed. The Bill had previously passed the House of Reps without amendment and is before the Senate. The Bill proposes to amend the Corporations Act…

FCT v Jayasinghe – High Court finds foreign earnings as an expert ‘project manager’ with the UN were not exempt from income tax as he was not relevantly ‘a person who held an OFFICE in an international organisation’

On Wed 9.8.2017, the High Court unanimously held that the taxpayer, Mr Jayasinghe, was not entitled to exemption from taxation in the income years ended 30 June 2010 and 30 June 2011, as he was not a person who held an office in an international organisation within the meaning of s 6(1)(d)(i) of the International Organisations (Privileges…

GST: SAM 2017/D1 – Replacement Simplified Accounting Method for eligible food retailers that sets a proportion of GST-free and taxable food acquisitions and sales – draft Legislative Instrument released for comment

On Wed 9.8.2017, the ATO released Draft SAM 2017/D1 – GST: Simplified Accounting Methods Determination 2017 for Food Retailers – Business Norms, Stock Purchases and Snapshot Methods. This is made under s123-5(1) of the GST Act (providing for simplified methods of accounting). It allows eligible food retailers a sampled method of calculating their net GST by…