Labor’s proposal to abolish refunds of unused franking tax off-sets & subsequent exemption for pensioners – protests from SMSFs and self-funded retirees continue

Tax Month - March 2018

On  13 March 2018, the Opposition Leader: Bill Shorten announced that a Labor Government would, if elected (and the Senate permitted), abolish cash ‘refunds’ of excess dividend imputation credits for individuals and superannuation funds. On 27 March 2018, the Treasurer (Chris Bowen) ameliorated this measure by exempting pensioners and pensioner SMSFs (what they call the…

Treasury Laws Amendment (2018 Measures No 2) Bill 2018 – various amendments to the requirements for venture capital tax concessions – Early Stage VCLP and ‘Early Stage Innovation Companies’ & Committee Report

Tax Month - February 2018

The Government introduced the Treasury Laws Amendment (2018 Measures No 2) Bill 2018 into the House of Reps this Thur 8.2.2018 to implement the this previously announced measure (and one other, which I will not be covering). This Bill was referred to the Senate Economics Legislation Committee, on 15 February 2018, for report by 15 March…

Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2017 – Senate Economics Legislation Committee Report: pass it, review its operation later (and still no ‘bounty’)

Tax Month - March 2018

On 22 March 2018 the Senate Economics Legislation Committee delivered its report on the Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2017. Despite a diversity of views, the Committee cited a consensus that the Bill was a step forward and should be passed [Recommendation 3, para 3.93]. But also said that a review of the…

Senate Economics Legislation Committee’s Report on the Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2017 – Content of the bill (a useful summary)

Tax Articles

The Senate – Economics Legislation Committee Committee’s Report – Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2017 [TT Tax Month article: Exposure Draft of Bill; Introduction of Bill; Committee’s Report]   Chapter 2 – Content of the Bill (extract) – a useful summary Harmonising whistleblower regimes 2.1 The current protections in the Corporations Act 2001 (the Corporations Act) cover a current…

Treasury Laws Amendment (Income Tax Consolidation Integrity) Bill 2018 – proposing 6 measures: the ‘deductible liabilities measure’; the ‘deferred tax liabilities measure’; the ‘securitised assets measure’; the ‘churning measure’; the ‘TOFA measure’ and the ‘value shifting measure’

Tax Month - March 2018

On 15 February 2018, the Government introduced the Treasury Laws Amendment (Income Tax Consolidation Integrity) Bill 2018 into the House of Representatives, it passed the Lower House, without amendment, on 28 February 2018 and passed all stages on 22 March 2018. There are around 12,000 tax consolidated groups in Australia, including the majority of the largest businesses.…

Coventry v CofT – DFAT employee’s overseas earnings exempt from Australian tax, under s23AG, because diplomatic immunity was not ‘the only’ reason for no Pakistani tax (and draft DIS)

Tax Month - February 2018

On 12 January 2018, the AAT has decided that a DFAT employee’s earnings while working in Pakistan were exempt under s 23AG of the ITAA 1936. This was because there was a Development Agreement, that gave the earnings exemption from Pakistani tax. I will explain why. Section 23AG(1) exempts, from Australian tax, any foreign earnings derived by…

EU proposing to ‘go it alone’, in taxing ‘digital’ services, whilst waiting for OECD/G20 multi-lateral initiatives to tax these services

Tax Month - March 2018

On 21.3.18, the European Commission proposed new rules to tax digital business activities – ‘going it alone’, ahead of any consensus from the OECD/G20. In response to this, the Australian Treasurer was reported as saying: ‘that Australia, like other G20 nations, might go it alone with measures to tax digital economy companies, like Uber, because…

DCT v Rennie Produce (Aust) Pty Ltd (in liq) – ATO s355-10 (old s264) notice to produce documents ‘trumps’ liquidator’s “Harman obligation” not to use documents produced, under other proceedings, for another purpose

Tax Month - March 2018

On 20 March 2018, the Full Federal Court has held that the “Harman obligation” did not excuse a liquidator from complying with an ATO notice “to produce documents”, under  under s 353-10, Sch 1 TAA (which superseded the old s264 of the ITAA36). Failure to comply with such a notice, if not constrained by law, is an offence.…