In the 2013 Budget, it was announced that the Government would provide $67.9m over 4 years to the ATO to undertake compliance activity in relation to trust structures. The ATO has released further information on the potential targets of this compliance action utilising its intelligence systems, including new tax return labels. It said some of…
The ATO on Tue 7.5.2013 released details of its administrative treatment regarding the Government’s proposed reforms to update the method for determining the taxable value of airline transport fringe benefits contained in the Tax and Superannuation Laws Amendment (2013 Measures No 1) Bill 2013 which is currently before the House of Reps. According to the…
This Draft Ruling, released on Wed 29.5.2013, sets out the Commissioner’s views on the interpretation of aspects of s 23AG(1AA) of the ITAA 1936. It applies to Australian resident individuals serving in a foreign country as an employee or officeholder. The Draft specifically considers the following issues: meaning of “delivery of Australian official development assistance”; when…
The High Court on Wed 1.5.2013, unanimously granted the Commissioner special leave to appeal from the Full Federal Court decision in Unit Trend Services Pty Ltd v FCT [2012] FCAFC 112 and then immediately allowed the appeal and ordered that certain orders of the Full Federal Court made on 5 October 2012 be set aside and, in…
The Organisation for Economic Co-operation and Development (OECD) has advised that 45 Tax Commissioners have recently gathered for the 8th meeting of the Forum on Tax Administration held on 16-17 May 2013 in Moscow, Russia. In a final communiqué from the Forum, the Commissioners affirmed their commitment to work together to tackle trans-national tax fraud, tax evasion,…
The ATO on Wed 22.5.2013, released the following Class Rulings: CR 2013/30: Demerger of FIIG Securities Ltd by Driven Holdings Pty Ltd. It applies from 1 July 2012 to 30 June 2013. The Ruling broadly states that Driven Holdings shareholders can choose demerger roll-over relief under s 125-55(1) of the ITAA 1997 to disregard any capital gain made when CGT…
This Draft Ruling, released Wed 29.5.2013, deals with when commercial software developers derive income for the purposes of s 6-5 of the ITAA 1997 from licence agreements, and “hosted” or “cloud” arrangements. Broadly, the Ruling states where an amount properly attributable to a contractual obligation is subject to a “contingency of repayment”, the amount is derived…
The ATO on Mon 6.5.2013 released a Decision Impact Statement on the High Court decision in FCT v Consolidated Media Holdings Ltd [2012] HCA 55; (2012) 84 ATR 1. In that case, the High Court unanimously allowed the Commissioner’s appeal thereby confirming that the taxpayer made a capital gain of some $400m in an off-market…
The NSW Supreme Court has dismissed proceedings by a taxpayer who sought to argue that his conviction for 7 counts of tax fraud related to non-declaration of income in relation to transactions with Vanuatu institutions as part of a “Project Wickenby” investigation were invalid in various ways. As a result, the taxpayer sought to argue…
The ATO on Fri 10.5.2013, released a Decision Impact Statement on the decision of the NSW Supreme Court in DCT v McGuire & Anor [2013] NSWSC 184. In that case, the Supreme Court held that s 60(1) of the Partnership Act 1892 (NSW) did not limit the liability of 2 limited partners (the taxpayers) to an…