The sole purpose test substantially clarified by the Full Federal Court in Aussiegolfa Pty Ltd v Commissioner of Taxation 

Tax Articles

An article By Daniel Butler (dbutler@dbalawyers.com.au), Director, and William Fettes (wfettes@dbalawyers.com.au) Senior Associate, DBA Lawyers 15 August 2018 [See also related Tax Technical Article on this case.]  A recent unanimous decision of the Full Federal Court represents a major win for SMSFs and taxpayers on the topic of the sole purpose test. This decision overturns the…

R v Agius; R v Castagna (No 14) – 70 year old cousins jailed for about 7 years each, for diverting Macquarie fees through Vanuatu without declaring them as income

Tax Month - August 2018

On 10 August 2018, the NSW Supreme Court sentenced cousins: Robert Agius and Anthony Castagna to jail, for 2 counts of what could broadly be called defrauding the Commonwealth (count 1 under s29D of the Crimes Act 1914 and count 2 under s135.4(3) of the Criminal Code 1995) and a 3rd count of dealing with…

Small Business Ombudsman calls for ‘instant asset write-off’ to be extended from a $20,000 cost cap to $100,000 – public hearing of Lower House Economics Committee on impediments to small business

Tax Month - August 2018

On 6 August 2018, the Australian Small Business and Family Enterprise Ombudsman: Kate Carnell, put out a media release, calling for (amongst other things) for the ‘instant asset write-off’ to be increased from $20,000 to $100,000 and that this be embedded in legislation (as opposed to simply being a temporary measure enacted only in the…

CofT v ACN 154 520 199 Pty Ltd (in Liquidation) – Gold bullion GST case – Federal Court reverses AAT order that the Commissioner produce internal advice on the ‘no refining issue’ on the basis that it ‘relevant’ to the ‘penalties’ issues

Tax Month - August 2018

On 3 August 2018, the Federal Court has struck down, as invalid, the AAT’s earlier order, that the Commissioner produce certain internal advices, that the Taxpayer believed agreed with the stance it took on whether gold could be re-refined, for GST purposes. The AAT concluded that they were ‘relevant’ to its review of the objection…

Think the Black Economy measures won’t affect you? Think again – ‘Statements of Tax Record’ down supply chain for bidders on Commonwealth Contracts

Tax Articles

An article in KPMG’s Daily Tax News: 6 August 2018, by Keith Swan, Partner; Jacqueline McGrath, Senior Manager; George Hempenstall, Consultant, Tax Dispute Resolution & Controversy Key questions remain for a proposal to screen the tax record of potential bidders on Commonwealth government contracts. From 1 July 2019, businesses may be required to produce a Statement…

Tax Practitioners Board welcomes new Secretary/CEO – 30 year public servant lawyer coming from ATO ‘risk officer’ background

Tax Month - August 2018

On Monday 6 August 2018, the Chair of the Tax Practitioners Board: Mr Ian Taylor, welcomed a new Secretary/Chief Executive Officer; Mr Michael O’Neill, to the role. Mr O’Neill is a taxation lawyer with close to 30 years of public service experience: joining the Board from the Australian Taxation Office (ATO), where he was Chief…

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)

Tax Month - August 2018

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

Tax Month - August 2018

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

Tax Month - August 2018

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

Tax Month - August 2018

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…