Treasury Laws Amendment (2018 Measures No 1) Bill 2018 introduced: purchaser GST withholding on residential property commercing 1 July 2018 – including notices by all vendors (whether ‘new’ or not and for vacant residential land)

Tax Month - February 2018

The Government introduced the Treasury Laws Amendment (2018 Measures No 1) Bill 2018, into the Lower House of Parliament on Wednesday 7.2.2018 and it was passed the Lower House, unamended, on 27.2.2018. In Schedule 5, it proposes amendments to introduce new GST withholding provisions. These provisions will require purchasers of ‘new residential premises’, and of ‘potential residential land’,…

CofT v Hacon Pty Ltd & Ors – Commissioner does not have to give private ruling on Part IVA for proposed restructure – Taxpayer seeks leave to appeal to the High Court

Tax Month - February 2018

The taxpayers has lodged an application for special leave to appeal to the High Court from the Full Federal Court decision in CofT v Hacon Pty Ltd & Ors [2017] FCAFC 181. The Full Federal Court had held that the Commissioner was entitled to refuse to make a private ruling, under the discretion in s357-110(1)(a) in…

CR 2018/7 – Return of capital by way of in specie distribution as part of restructuring of Eneabba Gas Ltd- no ‘demerger relief’ available & resulting consequences

Tax Month - January 2018

On Wed 31.1.2018, the ATO issued Class Ruling CR 2018/7 (Eneabba Gas Limited – return of capital by way of in specie distribution). It explains the tax consequences for shareholders of Eneabba Gas Ltd (ENB) who received an in specie distribution of UIL Energy Ltd (UIL) convertible redeemable preference shares in September 2016. The ATO says that:…

DIS – Cable & Wireless Australia & Pacific Holding BV (in liquidatie) v CofT – ATO accepts FFC decision that the $6.2b Optus buy-back amount was a ‘dividend’ correctly giving rise to the $452m withholding tax

Tax Month - January 2018, Uncategorized

The ATO has issued a Decision Impact Statement on the Full Federal Court decision in Cable & Wireless Australia & Pacific Holding BV (in liquidatie) v FCT [2017] FCAFC 71, which held that an off-market share buy back receipt was a ‘dividend’ to the overseas recipient and that and the withholding tax paid was correctly paid…

Sharpcan Pty Ltd v CofT – Expenditure on Victorian ‘gaming machine entitlements’ held deductible but, if capital, it was not ‘black-hole’ deductible over 5 years because it ‘enhanced’ the value of goodwill (before Pagone J as DP)

Tax Month - January 2018

The AAT held that the taxpayer was correct in claiming certain expenditure, on ‘gaming machine entitlements’. The deductions were held to have been allowable, for the whole of the expenditure, in the year it was ‘incurred’, under the provision allowing ‘general deductions’, in s8-1 of the Income Tax Assessment Act 1997 (ITAA97). These ‘gaming machine…