AFP discloses a 76 year old man: John Kinghorn, has been charged with fraud and evading payment of $30m in taxes – maximum penalty: 10 years in jail

Tax Month - October 2017

The Australian Federal Police (AFP) has charged a 76-year-old Sydney man with Commonwealth fraud offences, following a complex eight-year investigation. (The Australian Financial Review has disclosed that this man is John Kinghorn, who, amongst other things, founded and floated RAMS Home Loans. This is in their Tuesday 1 November 2017 edition on page 1.) It…

ATO explains its analysis of the ‘gap’ between taxes theoretically due and actually paid – why and how

Tax Articles

Why we measure the tax gap Estimating tax gaps forms part of the ATO’s broader accountability and transparency as a leading administrator. It is consistent with contemporary international best practice in tax administration. Australians all benefit from healthy tax and superannuation systems that support our society and economy. The community expects us to manage all…

ATO analysis of the ‘gap’ between theoretical amounts of tax payable and that actually collected: GST – 7.3%, Large Corporate Income Tax – 5.8%, PAYGw – 1.9%, SG – 5.2%

Tax Month - October 2017, Tax Month - September 2017

The ATO has reported (on its website), that in October 2017, it updated its estimates for goods and services tax (GST), wine equalisation tax (WET), fuel excise, pay as you go (PAYG) withholding, and fuel tax credits (FTC). They advised: “We are in the process of refreshing our estimates and anticipate the next updates will be published…

ATO appears at Senate Estimates Committee hearing and responds on multiple issues – including making BEPS CbC reports public (“no-one would give us any [reports]”, says Commissioner)

Tax Month - October 2017

The Commissioner and 14 other ATO officers appeared at a Senate Economics Legislation Committee, Estimates, hearing on 25 October 2017. Their portion of the hearing commences at p47 of the Transcript and runs through to p74. The topics covered in the hearing were many. The ATO has resumed its ‘fix the irritants’ regime, visiting tax…

Vic Land Tax – North West Melbourne recycling Pty Ltd v Comr of State Revenue – taxpayer overpaid land tax by $244,486.87 on land with $1 value – Commissioners ‘technical bar’ argument fails

Tax Month - October 2017

The Victorian Supreme Court has allowed a taxpayer’s appeal and held that it was entitled to a refund of land tax for the 2011 to 2014 years pursuant to Part 4 of the Taxation Administration Act 1997 (Vic) – which relates to ‘refunds’. The Plaintiff paid amounts of land tax as assessed by the Commissioner…

Shord v FCT – old s23AG exemption for ‘foreign service’ or foreign tax offsets – taxpayer established that there had been procedural unfairness in establishing that he was not an ’employee’ when working overseas

Tax Month - October 2017

The Full Federal Court has allowed a taxpayer’s appeal and found that the AAT had denied him procedural fairness in finding he was not an employee during his foreign service. The substantive matter in the case essentially concerned whether the taxpayer was engaged in foreign service within the meaning of s 23AG(7) of the ITAA 1936…

TD 2017/19 Addendum – Reasonable meal allowance amounts for truck drivers – reasonable daily amount for employee truck drivers for meals ($55.30) with 3 separate amounts for breakfast ($24.25), lunch ($27.65) and dinner ($47.70)

Tax Month - October 2017

On Fri 27.10.2017, the ATO issued an Addendum to Taxation Determination TD 2017/19. This Determination sets out the reasonable travel and overtime meal allowance expense amounts for the 2017-18 income year. The Addendum replaces the reasonable daily amount for employee truck drivers for meals ($55.30) with 3 separate amounts for breakfast ($24.25), lunch ($27.65) and…

Citizen 7 High Court decision – Canavan and Xenephon survive; Joyce, Ludlam, Nash, Roberts and Waters ineligible – it is necessary to have taken all steps reasonably required by foreign law to renounce his or her citizenship of a foreign power

Tax Month - October 2017

Today the High Court, sitting as the Court of Disputed Returns upon references from the Senate and the House of Representatives, unanimously held that each of Mr Scott Ludlam, Ms Larissa Waters, Senator Malcolm Roberts, the Hon Barnaby Joyce MP and Senator the Hon Fiona Nash was “a subject or a citizen … of a foreign power” at the time…

Operation of the MAAL – ATO ‘clarifies’ the effect of its evidence before the Senate Estimates Committee – which was that the MAAL had been very effective

Tax Month - October 2017

The ATO said that commentary on 25 October 2017 had misrepresented the ATO’s evidence given at Senate Estimates in relation to the Multinational Anti-Avoidance Legislation (MAAL). It said: we wish to confirm the ATO is active in ensuring compliance by multinationals and the corporate tax sector, and the MAAL is effective in bringing multinational taxpayers…