Daily Archives: August 19, 2018

NSW: Duty on transfer of dutiable (real) property remains payable on the ‘purchase price’ – including any amount for GST (even after the new GST withholding system)

Revenue NSW has issued Revenue Ruling DUT 047:Consideration and GST Withholding that clarifies that duty is still payable on the purchase price, including the GST component, even if GST withholding applies and the purchaser pays the withheld amount directly to the ATO. The Ruling follows the changes to GST on property sales commencing on 1 July 2018,…

Mitchell v CofT – Taxpayer’s overtime meal expenses deductions of $8,130 only allowed up to the $1,608 assessable meal allowance

A site surveyor has been unsuccessful before the AAT in claiming meal expenses in excess of his overtime meal allowance. The main facts were these. Under an industrial agreement, the taxpayer was entitled to a meal allowance, when he worked overtime, for one half hour or more, after working his ordinary hours, which were 8…

Tax agents facilitating suspected phoenix activity and avoidance of tax – coordinated strike at 11 sites in Melbourne and Shepparton – 250+ officers and some police exercise access powers without notice

On 1 August 2018, the ATO used its access powers (without notice) at 11 sites in Melbourne and Shepparton, deploying more than 250 ATO officers, supported, in some locations, by Victoria Police officers. This was part of a broad investigation into alleged phoenix activity and avoidance of tax. “We are examining a group of tax agents suspected…

Board of Taxation review of FBT compliance costs – working group formed and research projects invited

In February 2018, the Minister for Revenue and Financial Services wrote to the Board requesting that the Board conduct a comprehensive review of the compliance costs associated with obligations under Fringe Benefits Tax (FBT) legislation. The Minister also requested that the Board examine the approach in comparable countries to the taxation of fringe benefits provided…

Technology boon for FBT on car parking benefits – Technology makes calculating the exact benefit possible (and refunds a possibility)

The identification and calculation of car parking fringe benefits can be one of the most tiresome features of the fringe benefits tax (FBT) compliance process for employers. Many employers have sought to manage their workload in this respect by applying the statutory formula to calculate the number of benefits they provide over the course of…

Thin Cap ‘Integrity’ measure announced in 2018 Budget – draft legislation released – from 1 July 2019: ‘financial statements’ only asset values and ‘consolidated’ groups both inward and outward like other taxpayers

On 1 August 2018, Treasury released draft legislation for the Government’s Thin Capitalisation integrity measures announced in its 2018 Budget. There are 2 categories of change. requiring entities to align the value of their assets for thin capitalisation purposes with the value included in their financial statements; and ensuring that foreign controlled Australian consolidated entities…

TD 2018/D4 and TD 2018/D5 – Thin capitalisation: valuing ‘debt capital’ using accounting standards and identifying non-variable ‘debt deductions’

ON Wed 1.8.2018, the ATO issued two draft Determinations to help non-ADI entities make the relevant ‘thin capitalisation’ calculations in Div 820 of the ITAA97. At its most basic, thin capitalisation involves taking average debt and asset values for the year, to assess whether there is too much debt, so that ‘thin capitalisation’ provisions are…