TR 2017/D7 – Commissioner will expand the scope of his ruling on when a company ‘carries on a business’ to the substantive law (not just when the 27.5% lower corporate rate applies)

Tax Month - November 2017

The staged introduction of the 27.5% lower rate of company tax began on 1 July 2016, using a ‘carrying on business’ test, probably intending it to exempt companies receiving ‘passive’ investment income. That, however, hit headwinds, when the Commissioner started making his views known in a form that he later issued as TR 2017/D7. The…

Vic taxes: State Taxation Acts Further Amendment Bill 2017 – Congestion Tax exemption; foreign purchaser additional duty; first home buyer duty concession; absentee owners land tax surcharge; land tax exemption; payroll tax exemption for training organisations

Tax Month - November 2017

On 31 October 2017, the Victorian Government introduced the State Taxation Acts Further Amendment Bill 2017 into the Victorian Legislative Assembly and was read a second time the following day. It will amend various taxing statutes, in the ways and from the commencing dates set out below. Part 2, which amends the Congestion Levy Act…

Class Ruling CR 2017/74 – CGT treatment of disposal of PaperlinX Step-Up Preference Securities in exchange for Spicers ordinary shares

Tax Month - November 2017

On Wed 1.11.17, the ATO  issued Class Ruling CR 2017/74 (Spicers Ltd – CGT treatment of disposal of PaperlinX Step-Up Preference Securities in exchange for Spicers ordinary shares). The Ruling discusses the CGT consequences of CGT event A1 happening when unitholders of PaperlinX SPS Trust exchanged their units for ordinary shares in Spicer Ltd. DATE…

TD 2017/22 Addendum – Foreign equity distributions to corporate beneficiaries can hold a can “hold” a direct control interest in a foreign company and a corporate beneficiary can have a 10% ‘participation’ interest – but not until year end when the income entitlement arises

Tax Month - November 2017

On Wed 1.11.17, the ATO issued an Addendum to Determination TD 2017/22. The Determination provides that a trust  for the purpose of the foreign equity distribution rules in Subdiv 768-A of the ITAA 1997. Accordingly, the ATO accepts that a corporate beneficiary can have a participation interest in the foreign company for the purpose of…

SMSF property investments service provider pleads guilty to dishonesty obtaining client money and knowingly dealing with the proceeds of crime – refused bail, awaiting sentence in June 2018 and in jail for other offences

Tax Month - November 2017

Following an ASIC investigation, Ms Sarah Jane Busteed, of Sydney, pleaded guilty on 23 October 2017 in the New South Wales District Court to two charges that she dishonestly obtained client funds and to one charge of dealing with over $100,000 of client funds that were the proceeds of crime. Ms Busteed admitted her guilt…

ACT: Revenue Legislation (No 2) Bill introduced – further refines the ACT ‘Barrier Free’ duty payment arrangements for transfers of land, declarations of trust and commercial leases with premiums (amongst other things)

Tax Month - October 2017

On 26 October 2017, the Revenue Legislation Amendment Bill 2017 (No 2) was introduced in the ACT Legislative Assembly. It proposes a range of amendments including: Amendment of the Duties Act 1999 to clarify that if a dutiable transaction is not registered, the Commissioner has the power to make an assessment of duty liability under…

AFP discloses a 76 year old man: John Kinghorn, has been charged with fraud and evading payment of $30m in taxes – maximum penalty: 10 years in jail

Tax Month - October 2017

The Australian Federal Police (AFP) has charged a 76-year-old Sydney man with Commonwealth fraud offences, following a complex eight-year investigation. (The Australian Financial Review has disclosed that this man is John Kinghorn, who, amongst other things, founded and floated RAMS Home Loans. This is in their Tuesday 1 November 2017 edition on page 1.) It…