Yearly Archives: 2017

Tax deductions inquiry report by Parliamentary Committee tabled – recommendations include keeping ‘work related expense’ deductions but quantifying and policing them better and no significant change for companies (particularly interest deductions)

On Thursday 15 June 2017, the House of Reps Standing Committee on Economics tabled its 119-page Report on the inquiry into tax deductibility. It’s recommendations were directed to personal tax and income tax (which are extracted below). For personal deductions, the focus was on ‘work related expenses’ which it concluded should continue, but with more…

Treasury Laws Amendment (GST Integrity) Bill 2017 – voluntary and mandatory ‘reverse charge’ provisions for supplies of gold, silver and platinum and related changes to the definition of ‘second hand goods’ for ‘integrity’ reasons

The Treasury Laws Amendment (GST Integrity) Bill 2017 was introduced into and passed the Lower House, without amendment on 15.6.17. Its effect would be as follows. This Bill introduces a mandatory reverse charge for taxable supplies between suppliers and purchasers of gold, silver and platinum. This removes the opportunity for fraudulent input tax credit claims…

Treasury Laws Amendment (Foreign Resident Capital Gains Withholding Payments) Bill 2017 – withholding obligation increased from 10% to 12.5% and residential threshold reduced from $2m to $750k with effect from 1 July 2017

On Thursday, 15.6.17, the Treasury Laws Amendment (Foreign Resident Capital Gains Withholding Payments) Bill 2017 passed by the House of Reps, and moved to the Senate, where it was also passed on the same day. The now passed Act will amend the relevant withholding provisions in Division 14 of Schedule 1 to the Taxation Administration Act…

Treasury Laws Amendment (2017 Measures No 2) Bill 2017 – passed all stages – amends 6 Acts to make technical changes relating to the $1.6m ‘transfer balance cap’ superannuation legislation and related measures

On 15 June 2017, the Treasury Laws Amendment (2017 Measures No 2) Bill 2017  passed all stages of Parliament, without amendment, and effectively await Royal Assent, after having been passed by the Senate today The Bill amends six Acts to make amendments arising out of the enactment of the Treasury Laws Amendment (Fair and Sustainable Superannuation)…

DCT v A & S Services Australia Pty Ltd (No 2); DNV Accountants & Business Advisors (No 2); Bolton & Swan Pty Ltd (No 2); Ainslie Harding & Wood Solicitors Pty Ltd (No 2) – After provisional liquidators were appointed to non-compliant / ‘phoenix’ companies the Federal Court ordered would them up on the ‘just and equitable ground’

The Federal Court has ordered the winding up of each of several corporate defendants, including an accounting firm and a firm of solicitors. On 3 April 2017, the Federal Court appointed provisional liquidators to each of of the following pursuant to s 472(2) of the Corporations Act 2001 (Cth): [2017] FCA 437. A & S Services Australia…

Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2017 – 12 month extension of period for 100% depreciation deduction of $20,000 1st element or 2nd element asset cost amounts, in any one year – to 30 June 2018

The Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2017 passed all stages without amendment and effectively await Royal Assent, after having been passed by the Senate 15.6.2017. The Bill amends the $20,000 accelerated depreciation rules, for 12 months to 30 June 2018 (s328-180 ITAA 1997 & s328-180 Transitional Act). Section 328-180 provides a 100%…

TD 2017/16 – Commissioner publishes the next indexed ‘CGT improvement threshold’ for the purposes of post-CGT improvements to pre-CGT land being a separate asset under s108-70 & s108-75

The ATO issued a Determination: TD 2017/16 on Wed 14.6.2017, advises that the CGT improvement threshold for the 2017-18 income year is $147,582 (up from $145,401 in 2016-17). The threshold is changed to take account of inflation. The improvement threshold is relevant to s 108-70 of the ITAA 1997, which treats an improvement to a pre-CGT asset,…

Country by Country (CbC) Reporting – EU Parliamentary Committee resolves that Big Multinationals (750m Euro plus global turnover) must PUBLICLY report tax affairs in each country – including countries outside the EU

The Economics and Legal Affairs Committees of the European Parliament on 12 June 2017 voted to make multinational companies, with an annual net turnover of €750 million and above, publicly report their activities, structures and tax payments on a country-by-country basis. The draft report was approved by 38 votes to 9 votes, with 36 abstentions. The result, if…

ATO’s review of private advice – offering early engagement like ‘big business’ and streamlined ruling application form

Deputy Commissioner Tim Dyce said the ATO has made a number of changes to our advice and guidance services that are designed to be responsive to community needs. Through the review of private advice we set out to learn all we could about our private advice services – and then went about making changes to improve…

Privately owned and wealthy groups – the ATO lists the features that attract its audit and investigation interest

Many advisers might have some idea what attracts the ATO’s attention to privately owned and wealthy groups, but now it has uploaded its own list of features on its, website, which comprise the following behaviours and characteristics may attract its attention: tax or economic performance is not comparable to similar businesses; low transparency of tax affairs; large,…