Decleah Investments Pty Ltd v CofT – GST: ‘margin scheme’ applied to taxpayer’s 1 July 2000 value – value based on discounting actual (not predicted) cash flows was ‘not contrary’ to the relevant professional valuation standards

Tax Month - May 2018

The Federal Court has upheld an appeal against an AAT decision that the taxpayer had not provided an approved valuation when applying the margin scheme on the supply of subdivided lots. The ‘margin scheme’ can be applied to taxable supplies of ‘real property’ by way of sale (or grant of a long term lease) –…

Denmark Community Windfarm Ltd v CofT – Grant to establish wind farms triggers an assessable recoupment as ‘indemnity’ and depreciation under the optional method for ‘small business entities’ & now a DIS

Tax Month - February 2018

The Full Federal Court has dismissed the taxpayer’s appeal and held that a Commonwealth grant of almost $2.5 million, for the establishment of wind farms, was an assessable recoupment of deductible expenses, under s20-20 of the ITAA97 – despite the deductions being amortised rather than an ‘outright deduction’. The case involved the development of a…

$10k cash payment limit – Government commences consultation on this Budget ‘black economy’ measure to start on 1 July 2019

Tax Month - May 2018

On Friday 25 May 2018, Treasury released a consultation paper to implement the 2018 Budget Measure to introduce an economy-wide cash payment limit of $10,000. It invites comments by 24 June 2018. Minister O’Dwyer also released a Press Release. The measure would apply from 1 July 2019. The Government proposes that a cash payment, over…

ATO updates its audit risk ‘guidelines’ on allocation of profits within professional firms

Tax Month - May 2018

The ATO published the ‘Assessing the Risk: Allocation of profits within professional firms’ guidelines and ‘Everett Assignment’ web material in 2015, and said, at that time, they would be reviewed in 2017. In reviewing the guidelines the ATO become aware of situations that had misinterpreted the guidelines or gone beyond the scope of the guidelines.…