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…
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…
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…
The NSW Civil and Administrative Tribunal has found that a land owner was not exempt from land tax, as his principal place of residence’ under Schedule 1A of the Land Tax Management Act 1956 (NSW – more particularly, under s6, which gives exemption for ‘unoccupied land intended to be the owner’s principal place of residence’.…
The Federal Court has granted the Commissioner a freezing order of the assets of a taxpayer concerning a $7.5 million tax debt. The Commissioner had sought freezing orders against the taxpayer under Division 7.4 of the Federal Court Rules 2011 (Cth). After hearing counsel for the Commission, Colvin J made orders substantially in the terms sought.…
On 30 July 2018, the ATO uploaded their 10 top ‘myths’ about tax deductions. Top 10 tax myths Myth 1: Everyone can automatically claim $150 for clothing and laundry, 5000 kilometres for car related expenses, or $300 for work-related expenses, even if they didn’t spend the money Fact: The record-keeping exemptions provide relief from the need…
On Friday 27 July 2018, Treasury released, for public consultation, the second stage of draft legislation, giving effect to the measures announced on 27 March 2018 that seek to address risks to the corporate tax base, posed by: stapled structures and similar arrangements, as the law currently stands, and limiting access to concessions currently available to foreign…
On 26 July 2018, the ATO issued a draft Decision Impact Statement (DIS) on the GST case: MSAUS Pty Ltd v. Commissioner of Taxation [2017] AATA 1408, which defied earlier cases on sale of apartments in the same block, but the Commissioner chose not to appeal. The background facts and GST decisions (common to all the…
The AAT has refused a taxpayer’s application for review of the Commissioner’s decision not to issue an extension of a departure authorisation certificate (DAC). On 21 September 2017, the Commissioner issued amended assessments to the taxpayer for the income year ended 30 June 2007 totalling $33.33 million. The Commissioner assessed the tax liability based on the transfer of US$21…
The NSW Supreme Court has dismissed proceedings brought by a plaintiff against an accounting partnership for alleged misleading advice on the tax consequences of entering into an option deed. The facts were as follows. The Court said Mr Peter Hall was beneficially the sole shareholder of Hampshire Assets and Services Pty Ltd (Hampshire), and its…