In addition to the key areas of focus addressed in the Compliance Program for 2012-13, the ATO has also released details of its extended compliance focus areas as at 11 July 2012, including: higher-risk advisory firms and financial institutions; business structure schemes; trust schemes; private company deemed dividend avoidance schemes; international cross-border schemes; aggressive employee…
The ATO on Thur 19.7.2012, released its 2012-13 Compliance Program, highlighting the compliance issues attracting ATO attention and what it is doing to address them. The program covers individuals, micro businesses, SMEs, large businesses, Project Wickenby, tax practitioners, superannuation, promoter penalty laws, and non-profit organisations. Focus areas identified by the ATO include: unusually high levels…
The ATO has released details of its operations overview of 2012-13. It contains information on its role, its people, and its resources, as well as revealing its budget of $661.7m (as at 28 May 2012). The document also sets out the ATO’s strategic direction for 2012-13 including: increasing electronic interactions and automated transactions; meeting service…
With the Tax and Superannuation Laws Amendment (2012 Measures No 1) Bill 2012 receiving Royal Assent on 27 June 2012 as Act No 75 of 2012, the changes to the Commissioner’s discretion to retain “high risk” refunds have now come into place. The ATO has released information to clarify how the amendment applies in certain…
The ATO on Thur 12.7.2012, issued Taxpayer Alert TA 2012/4 warning taxpayers of arrangements where accumulated profits of a private company are distributed substantially tax-free to an entity associated with the ordinary shareholders of the private company. The ATO said the dividends are generally distributed on a new class of shares which the private company…
The ATO on Thur 5.7.2012, released Draft Practice Statement PS LA 3582 (Exercise of the Commissioner’s discretion under s 8AAZLGA of the TAA to retain an amount that would otherwise be refunded). It provides guidance to tax officers on when it is reasonable to exercise the Commissioner’s discretion to delay a refund amount pending verification…
The ATO Wed 25.7.2012, issued Class Ruling CR 2012/55 (Master of Veterinary Studies/Master of Veterinary Clinical Studies (University of Sydney)). It applies from 1 July 2012. Broadly, the Ruling states the fortnightly stipend payments to the students undertaking the studies would be ordinary income under s 6-5(1) of the ITAA 1997, however, these payments are…
The ATO on Wed 18.7.2012, issued Product Ruling PR 2012/25 (Beazley Sports Consortium 9476 – Professional Sports Person Personal Accident & Illness Insurance). The Ruling provides that a Temporary Total Disablement Benefit received by the Insured in the event of their Temporary Total Disablement will be included in the assessable income of the Insured under…
The ATO on Wed 18.7.2012, issued the following Class Rulings: CR 2012/53 (Ludowici Limited Scheme of Arrangement and payment of Final Ordinary Dividend and Special Dividend). It applies from 1 July 2011 to 30 June 2013. CR 2012/54 (Scheme of arrangement – merger of Gloucester Coal Limited and Yancoal Australia Limited). It applies from 27…
The ATO on Wed 11.7.2012, issued the following Class Rulings: : Royal Bank of Scotland Group plc adjustment to employee share schemes due to sub-division and consolidation of ordinary share capital. It applies from 1 July 2011 to 30 June 2014 and states that an CR 2012/49adjustment made to conditional awards or options issued under…