Yearly Archives: 2017

Re VGGL and FCT – GST input tax credits denied re property development business through insufficient information and unrelated litigation [46]

The AAT has affirmed the Commissioner’s decision and denied a taxpayer input tax credits claimed in relation to a property development business for the period from September 2005 to September 2009. The taxpayer was a sole trader who operated a property development business. There were a number of issues before the Tribunal in relation to the input tax credits…

*Re Australian Style Investments Pty Ltd as Trustee for the Australian Style Investments Unit Trust and FCT – supply of irrevocable proxies not a financial supply [45]

The AAT has held that a taxpayer was liable to GST in relation to the execution of a trust deed as it was a taxable supply under s 9-5 of the GST Act. The taxpayer was a trustee of a unit trust constituting a managed investment scheme and involved in an infrastructure project and in 2009…

ATO updates its compliance focus for 2013-14 [44]

The ATO has updated its Compliance in focus 2013-14 document to be current as at 19 December 2013 to include final 2012-13 results and 2013-14 plans. Key focus areas and activities for the ATO for 2013-14 include: Large business – income tax (including tax consolidation issues, CGT outcomes, complex structuring and scrutiny of financial arrangements) – the…

*New ATO data-matching program gazette to collect credit and debit card sales information [43]

The ATO has on Thur 12.12.2013, gazetted a notice stating that it will request and collect data relating to credit and debit card sales of entities for the periods from 1 July 2012 to 30 June 2014 from various financial institutions, including Commonwealth Bank of Australia, St George Bank, Westpac Banking Corporation, Australia and New Zealand Banking Group Limited,…

Building and construction industry ‘taxable payments system’ and the annual reporting obligation – ATO following up businesses and their agents [42]

The ATO has advised that it is currently contacting businesses in the building and construction industry by phone to test the levels of understanding of the requirements of the taxable payments system, and to assist businesses to comply with their annual reporting obligations. The ATO advises tax agents whose clients have been contacted to ensure…

ATO needs transformational change and cultural shifts: review [41]

The Australian Public Service Commission has released the findings of its “capability review” of the ATO highlighting opportunities for improvement. The review highlighted various strengths of the agency, but noted that the ATO needs to undergo “transformational change”. The Commission said the taxpayer community will demand greater access to improved services in a digital world,…

ATO releases updated list of matters under consultation [40]

The ATO has released its updated list of matters currently under consultation. The list is divided into 3 sections: technical, compliance, and administration. Under the technical list of matters, the ATO lists the following matters as in progress, including: trusts and anti-avoidance rules, alienation of income through discretionary trust partners, and the application of new…

*GIC rate is 9.59% pa and SIC rate 5.59% for Jan-Mar 2014 quarter [39]

The Tax Office has advised that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the 3rd quarter of the 2013-14 financial year (ie 1 January 2013 to 31 March 2014) are as follows: GIC annual rate is 9.59%; GIC daily compounding rate is 0.02627397%; SIC annual rate is 5.59%; and SIC daily compounding rate is…

PS LA 2013/4 (GA) – Fuel tax credits and auxiliary equipment [38]

The ATO on Thur 19.12.2013, released Practice Statement Law Administration PS LA 2013/4 (GA) to set out the percentage of taxable fuel the Commissioner accepts as a fair and reasonable apportionment of the fuel used in a vehicle for powering the auxiliary equipment of the vehicle. In particular, the PS LA states that the Commissioner…

Company tax losses and the no detriment rule [37]

The ATO on Fri 6.12.2013, issued the following IDs: ATO ID 2013/65: Company tax losses: whether company can disregard concessional tracing rules that apply in relation to more than one stake as part of forming the necessary belief for the purposes of the “no detriment” rule; and ATO ID 2013/66: Company tax losses: can a…