A taxpayer has been mostly unsuccessful before the AAT in claiming input tax credits (ITCs) for vehicles purchased in a car sales business. The AAT also affirmed the 25% penalty imposed by the Commissioner for failing to take reasonable care. The taxpayer carried on activities as a one-man business of selling motor vehicles. From 2004…
The AAT has affirmed the Commissioner’s ruling regarding whether a legal settlement was a taxable supply. The taxpayer was a financial services business established in 2010 by an individual after his termination from another financial planning firm. As part of the individual’s employment contract with his ex-employers, he had agreed to not canvass, solicit, or…
A taxpayer has been mostly unsuccessful before the Administrative Appeals Tribunal in a matter concerning claims for GST input tax credits. The Commissioner had denied the taxpayer’s claims for certain input tax credits relating to monthly tax periods ending 31 January 2008 to 30 September 2011 (inclusive). The Commissioner also imposed a penalty at 50% of the shortfall amounts…
The A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement (Motor Vehicle Incentive Payment Made to Motor Vehicle Dealer) Legislative Instrument 2014 was registered on Wed 21.5.2014. It waives the requirement for a recipient making a creditable acquisition to hold a tax invoice for an input tax credit to be attributable…
The Tax Laws Amendment (2014 Measures No 1) Bill 2014 has passed the House of Reps without amendment and now moves to the Senate. The Bill proposes to: amend the GST Act and the TAA to ensure that overpaid GST is refundable only in certain circumstances. [This involves introducing a new Division 142 into the…
The Australian Bureau of Statistics (ABS) on Wed 28.5.2014, released Taxation Revenue, Australia, 2012-13. The publication contains statistics of taxation revenue collected by all levels of government in Australia for the periods 2003-04 to 2012-13. Some of the stats for 2012-13 include: Total taxation revenue collected in Australia increased $25.23bn (6%) from $389.90bn in 2011-12…
Speaking at the Tax Institute’s 7th Annual Tax Reform Thur 22.5.2014, ATO Deputy Commissioner, Mark Konza, provided some insights into the work the ATO and Treasury are currently undertaking in relation to the OECD’s base erosion and profit shifting (BEPS) Action Plan. Mr Konza said the ATO supports Treasury in its consideration and advice to…
On 16 May 2014, the Parliamentary Secretary to the Treasurer, Steven Ciobo, delivered an address to the Clayton Utz BEPS Workshop. Mr Ciobo said “restoring trust in the international tax system on a multilateral basis cannot be achieved by OECD countries acting alone and the G20/OECD BEPS Project has been inclusive, incorporating non-OECD G20 countries into the…
ATO Deputy Commissioner, Tim Dyce, on Thur 22.5.2014, delivered a speech on the ATO’s administration of the promoter penalties regime and recent court decisions at the Tax Institute’s 7th Annual Tax Forum. Mr Dyce said the ATO’s approach to promoter risks is to act quickly to stop the proliferation of potential tax avoidance and tax…
On 10 May 2014, the Tax Commissioner made his closing remarks at the G20 Tax Symposium held in Tokyo, Japan. A key issue raised by a broad range of representatives was the need to improve the international tax system. “While there are differences of opinions, the discussion over the past 2 days demonstrated a significant amount of goodwill…