Yearly Archives: 2017

GST treatment of amounts recovered from customers to cover fees imposed by a financial institution for a dishonored payment by the customer [56]

The ATO, on Wed 1.8.2012, released Technical Discussion Paper TDP 2012/1 (GST treatment of recovered dishonoured payment costs). It considers the GST treatment of costs being recouped by a supplier when payment by a customer for a supply is dishonoured, resulting in the supplier incurring dishonoured fees from their financial provider which fees and associated…

Unit Trend Services Pty Ltd v FCT – GST margin scheme and avoidance – appeals partly allowed [55]

In a majority 2:1 decision, the Full Federal Court has partially allowed both the taxpayer’s appeal and Commissioner’s cross-appeal from a 2010 decision of the AAT, in which it was found that the taxpayer was entitled to use the margin scheme for some acquisitions of property, but did not have approved valuations for others, and…

Yacoub v FCT – Taxpayer appeals to Full Federal Court regarding GST on properties sold [54]

The taxpayers have filed notices of appeal to the Full Federal Court against the decision of Jagot J in Yacoub v FCT [2012] FCA 678. The Federal Court had dismissed appeals by the taxpayers concerning the Commissioner’s decision to disallow an objection to a notice of assessment for the payment of GST regarding properties sold.…

ECC Southbank Pty Ltd as trustee for Nest Southbank Unit Trust & Anor v FCT – shared and studio (student) accommodation was ‘commercial residential premises’ largely because of reception desk services [53]

The Federal Court has held that a sub-lease of student accommodation was a supply of commercial premises and that supplies of accommodation to 3 individuals were taxable supplies. The taxpayer, the trustee of the Nest Southbank Unit Trust (NSUT), developed student accommodation and serviced apartments at a Southbank site in Brisbane – Urbanest Southbank (the…

Refunding of excess GST: draft legislation released [52]

The Assistant Treasurer on Fri 17.8.2012, released draft legislation on the proposal to clarify the circumstances in which the restriction of GST refunds applies to overpayments of GST and allows taxpayers to self-assess their entitlement to a GST refund by reference to ascertainable criteria. He said the same criteria will also apply for refunds relating…

GST margin scheme and subdivided land: draft legislation released [51]

On Wed 15.8.2012 Treasury, released draft legislation and an explanatory memorandum on proposed changes to the margin scheme provisions contained in Div 75 of the GST Act. Broadly, the draft legislation seeks to amend the GST Act to ensure that, where applicable, the margin scheme for a taxable supply of subdivided land or premises can…

Prescribed private funds transitional period to change their rules closes on 1 October 2012 [50]

The ATO has reminded trustees of private ancillary funds that the transitional period to amend the fund’s governing rules to comply with the private ancillary fund guidelines closes on 1 October 2012. This applies to funds that were prescribed private funds on or before 30 September 2009. The ATO said the funds and their trustees…

Former Tax Commissioner Michael Carmody retires from public service on 24 August 2012 [49]

The Government has announced that former Tax Commissioner, Mr Michael Carmody, announced his retirement from the Commonwealth Public Service on 24 August 2012. At his retirement, Mr Carmody was the CEO of the Australian Customs Service. Mr Carmody’s public service career commenced in 1968 and he was appointed Tax Commissioner in 1993, a position he…

SMEs and wealthy individuals: new ATO compliance resource released [48]

The ATO on Wed 22.8.2012, released a new ATO online resource and printed booklet which sets out its approach to managing tax compliance risks for SMEs and wealthy individuals. The detailed new resource informs SME market taxpayers of their key rights and obligations. It also provides important information on ATO processes including risk-assessment procedures, compliance…

New member appointed to test case litigation panel – former Federal Court judge: Justice Lindgren [47]

The Tax Commissioner on Thur 2.8.2012, welcomed the addition of former Federal Court judge the Hon Kevin Lindgren, as a member of the test case litigation panel. Justice Lindgren joins external panellists Peter Poulos (Partner Maddocks Lawyers) and Graeme Wade (Accounting Consultant Hamilton Morello), as well as 2 senior ATO panellists Andrew England (Chief Tax…