Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 – exposure draft of Bill to exclude, from the 27.5% rate, small companies that carry on a business but have at least 80% ‘base rate passive income’ (so that 30% franking credits received can be fully passed on)

Tax Month - September 2017

On Monday 18.9.17, the Government  released exposure draft legislation proposing to exclude corporate tax entities from qualifying for the lower small business company tax rate if 80% or more of the entity’s assessable income is passive income. The Minister for Revenue said the Government’s decision to cut the tax rate to 27.5% for small companies…

Lewski v FCT – Beneficiary not liable to tax as trust loss deductions were relevantly ‘incurred’ and also she was not ‘presently entitled’ to any trust income – because the alternate resolution made her entitlement contingent or it infected the main resolution with invalidity also

Tax Month - September 2017

The Full Federal Court has overturned the AAT’s decision that the taxpayer was assessable on two trust distributions, made to her for two reasons. The first was that it confirmed the Trusts’ assumed losses for the relevant years. The second was that she had no ‘present entitlement’ to any trust income, either because the alternate…

Taxation Administration Regulations 2017 – promulgated to replace the 1976 regulations due to ‘sunset’ – refomated but no substantive change intended

Tax Month - September 2017

The Government promulgated Taxation Administration Regulations 2017 , which were registered on Thur 21.9.2017. They are to replace the 1976 Regulations which were due to sunset on 1 October 2017. The remade 2017 Regulations have been revised in several respects to adopt simpler language and remove duplicate or redundant provisions. However, the 2017 Regulations are not intended to alter…

Re Icehot Pty Ltd and FCT – taxpayer fails to get windfall refund of GST paid by a mortgagee bank and credited to mortgagor taxpayer – the ATO raised a debit to correct mistake then allowed the taxpayer’s objection, which the AAT held it could not review

Tax Month - September 2017

The AAT has ruled that the Commissioner’s reasons for allowing an objection decision in relation to a GST liability on the sale of the taxpayer’s properties by a mortgagee in possession was not reviewable by the AAT. In May 2013, a bank took possession of the taxpayer’s 2 properties over which the bank held a mortgage. The…